Please answer all these questions fully and label, data included: Size($) Rent(sq.feet) 850 1950 1450 2600 1085 2200 1232 2500 718 1950 1485 2700 1136 2650 726 1935 700 1875 956 2150 1100 2400 1285 2650 1985 3300 1369 2800 1175 2400 1225 2450 1245 2100 1259 2700 1150 2200 896 2150 1361 2600 1040 2650 755 2200 1000 1800 1200 2750 A real estate agent wishes to examine the relationship between the selling price of a home (measured in thousands of dollars) and its size (measured in square feet). In particular she wants to assess if the size of the home can accurately predict the house’s selling price. 1. Construct a 95% confidence interval estimate of the population slope, β1.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Please answer all these questions fully and label, data included:
| Size($) | Rent(sq.feet) |
| 850 | 1950 |
| 1450 | 2600 |
| 1085 | 2200 |
| 1232 | 2500 |
| 718 | 1950 |
| 1485 | 2700 |
| 1136 | 2650 |
| 726 | 1935 |
| 700 | 1875 |
| 956 | 2150 |
| 1100 | 2400 |
| 1285 | 2650 |
| 1985 | 3300 |
| 1369 | 2800 |
| 1175 | 2400 |
| 1225 | 2450 |
| 1245 | 2100 |
| 1259 | 2700 |
| 1150 | 2200 |
| 896 | 2150 |
| 1361 | 2600 |
| 1040 | 2650 |
| 755 | 2200 |
| 1000 | 1800 |
| 1200 | 2750 |
A real estate agent wishes to examine the relationship between the selling price of a home (measured in thousands of dollars) and its size (measured in square feet). In particular she wants to assess if the size of the home can accurately predict the house’s selling price.
1. Construct a 95% confidence
2. Construct a 95% confidence estimate of the mean renting cost of a house that is 2000 square feet.
3. Construct a 95% prediction interval of the renting cost of an individual house that is 2000 square feet.
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