The following data was collected to explore how the number of square feet in a house, the number of bedrooms, and the age of the house affect the selling price of the house. The dependent variable is the selling price of the house, the first independent variable (x1 ) is the square footage, the second independent variable (x2) is the number of bedrooms, and the third independent variable (x3 ) is the age of the house. Effects on Selling Price of Houses Square Feet Number of Bedrooms Age Selling Price 2833 12 303100 2052 11 274200 1985 4 11 259700 1958 4 7 259600 1763 3 6. 224300 204100 1658 194900 1564 4 135700 1523 3 125500 1404
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.
Find the p-value for the regression equation that fits the given data. Round your answer to four decimal places.
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