Real estate redux The regression of Price on Size ofhomes in Albuquerque had R2 = 71.4,, as described inExercise 25.a) What is the correlation between Size and Price?Explain why you chose the sign (+ or -) you did.b) What would you predict about the Price of a home 1standard deviation above average in Size?c) What would you predict about the Price of a home 2standard deviations below average in Size?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Real estate redux The regression of Price on Size of
homes in Albuquerque had R2 = 71.4,, as described in
Exercise 25.
a) What is the
Explain why you chose the sign (+ or -) you did.
b) What would you predict about the Price of a home 1
standard deviation above average in Size?
c) What would you predict about the Price of a home 2
standard deviations below average in Size?
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