The following data on sale price, size, and land-to-building ratio for 10 large industrial properties appeared in a paper. Sale Price Size (millions Land-to- (thousands Building Property of dollars) of sq. ft.) Ratio 1 10.6 2167 2 2.6 751 30.6 2423 1.9 225 20.1 3916 7.9 2867 1698 1045 1109 404 3 4 5 6 7 8 9 10 10.2 6.7 5.8 4.6 2.1 3.4 3.5 4.7 1.6 2.3 3.0 (a) Calculate the value of the correlation coefficient between sale price and size. (Give the answer to three decimal places.) r = 4.8 7.5 17.3 (b) Calculate the value of the correlation coefficient between sale price and land-to-building ratio. (Give the answer to three decimal places.) r = Land-to-building ratio (c) If you wanted to predict sale price and you could use either size or land-to-building ratio as the basis for making predictions, which would you use? O Size X (d) Based on your choice in Part (c), find the equation of the least-squares regression line you would use for predicting y = sale price. (Give answers to three decimal places.) ŷ=

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The following data on sale price, size, and land-to-building ratio for 10 large industrial properties appeared in a paper.
Land-to-
Sale Price Size
(millions (thousands Building
of dollars) of sq. ft.) Ratio
10.6
2167
2.6
751
30.6
2423
1.9
225
20.1
3916
7.9
2867
10.2
1698
6.7
1045
5.8
1109
4.6
404
Property
1
2
3
4
5
6
7
8
9
10
2.1
3.4
3.5
4.7
1.6
2.3
3.0
4.8
7.5
17.3
(a) Calculate the value of the correlation coefficient between sale price and size. (Give the answer to three decimal places.)
r =
(b) Calculate the value of the correlation coefficient between sale price and land-to-building ratio. (Give the answer to three decimal places.)
r =
(c) If you wanted to predict sale price and you could use either size or land-to-building ratio as the basis for making predictions, which would you use?
O Size
O Land-to-building ratio
(d) Based on your choice in Part (c), find the equation of the least-squares regression line you would use for predicting y = sale price. (Give answers to
three decimal places.)
ŷ =
+
x
Transcribed Image Text:The following data on sale price, size, and land-to-building ratio for 10 large industrial properties appeared in a paper. Land-to- Sale Price Size (millions (thousands Building of dollars) of sq. ft.) Ratio 10.6 2167 2.6 751 30.6 2423 1.9 225 20.1 3916 7.9 2867 10.2 1698 6.7 1045 5.8 1109 4.6 404 Property 1 2 3 4 5 6 7 8 9 10 2.1 3.4 3.5 4.7 1.6 2.3 3.0 4.8 7.5 17.3 (a) Calculate the value of the correlation coefficient between sale price and size. (Give the answer to three decimal places.) r = (b) Calculate the value of the correlation coefficient between sale price and land-to-building ratio. (Give the answer to three decimal places.) r = (c) If you wanted to predict sale price and you could use either size or land-to-building ratio as the basis for making predictions, which would you use? O Size O Land-to-building ratio (d) Based on your choice in Part (c), find the equation of the least-squares regression line you would use for predicting y = sale price. (Give answers to three decimal places.) ŷ = + x
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