Prices and square feet of 42 Destin Florida homes from Zillow.com. Prices ranged from $223,017 to $600,000. Square feet ranged from 1,152 to 2,769. Please show all work. Interpret b0 in the context of this problem. Interpret b1 in the context of this problem. What percent of total variation in prices is explained by the regression model? Provide evidence to support your answer. Price SqFt 600000 2767 545000 2731 314900 2051 419000 2084 365000 2270 479000 1950 323000 1235 339900 2116 399000 1644 552000 2415 223017 1375 315777 1529 499000 2223 575000 2327 342000 1879 375000 1558 349000 2012 485000 1200 549888 1410 295000 1943 399000 1827 306999 1840 265200 1636 479000 2357 249700 1152 539500 2650 365000 2154 295900 1279 499000 2156 526000 2493 514900 2390 346000 1347 460000 2120 389000 1917 499000 1200 405000 2643 389900 1789 545000 2327 339000 1742 425000 1746 479000 1421 392000 2569
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.
Prices and square feet of 42 Destin Florida homes from Zillow.com. Prices
- Interpret b0 in the context of this problem.
- Interpret b1 in the context of this problem.
- What percent of total variation in prices is explained by the regression model? Provide evidence to support your answer.
| Price | SqFt |
| 600000 | 2767 |
| 545000 | 2731 |
| 314900 | 2051 |
| 419000 | 2084 |
| 365000 | 2270 |
| 479000 | 1950 |
| 323000 | 1235 |
| 339900 | 2116 |
| 399000 | 1644 |
| 552000 | 2415 |
| 223017 | 1375 |
| 315777 | 1529 |
| 499000 | 2223 |
| 575000 | 2327 |
| 342000 | 1879 |
| 375000 | 1558 |
| 349000 | 2012 |
| 485000 | 1200 |
| 549888 | 1410 |
| 295000 | 1943 |
| 399000 | 1827 |
| 306999 | 1840 |
| 265200 | 1636 |
| 479000 | 2357 |
| 249700 | 1152 |
| 539500 | 2650 |
| 365000 | 2154 |
| 295900 | 1279 |
| 499000 | 2156 |
| 526000 | 2493 |
| 514900 | 2390 |
| 346000 | 1347 |
| 460000 | 2120 |
| 389000 | 1917 |
| 499000 | 1200 |
| 405000 | 2643 |
| 389900 | 1789 |
| 545000 | 2327 |
| 339000 | 1742 |
| 425000 | 1746 |
| 479000 | 1421 |
| 392000 | 2569 |
Step by step
Solved in 4 steps
