- Problem 7 You Have Been Asked By A Real Estate Company To Develop A Model To Predict The Assessed Value Of Houses Based 1 (618.37 KiB) Viewed 26 times
work/check mine. I am unsure if I am doing this properly. Thank you
so much!
Problem 7. You have been asked by a real estate company to develop a model to predict the assessed value of houses based on heating area. A sample of 15 houses is selected in a city. The assessed value (in thousand $) and the heating areas of the houses (in thousands of sq. ft) are contained in the Problem 7 file (Prob 7 HOUSE.XLS). 1 Create a scatterplot with Linear Regression Line for the data.
Describe the overall direction, form, and strength of the relationship. Does a linear relationship between assessed value and heating area seem reasonable? The direction of the linear regression line is linear and moving upwards. The relationship between these two variables is slightly reasonable. The strength of the relationship is mild as the plots are spread out among the linear regression line, yet is positive. Determine the correlation coefficient (1) and the coefficient of determination (12) for the relationship. R: 0.8120 12:0.66 Conduct the linear regression and determine the equation for the linear regression line. Assessed Value = 51.92 + 16.63 Fitted Equation: Heating Area At the 0.05 level of significance, is there evidence that the slope of the line is significant. That is, you are checking the hypothesis B1 is not equal to zero? ſenter the P-value and your conclusion]
Assessed Value 84.4 77.4 75.7 85.9 79.1 70.4 75.8 85.9 78.5 79.2 86.7 79.3 74.5 83.8 76.8 Heating Area Age 2 3.42 1.71 11.5 1.45 8.33 1.76 0 1.93 7.42 1.2 32 1.55 16 1.93 2 1.59 1.75 1.5 2.75 1.9 0 1.39 0 1.54 12.58 1.89 2.75 1.59 7.17