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A real estate agent wanted to find the relationship between sale price of houses and the size of the house. She collected data on two variables recorded in the following table for 15 houses in Seattle. The two variables are PRICE= Sale price of houses in thousands of dollars SIZE= Area of the entire house in square feet. PRICE 455 278 463 327 505 264 445 346 487 289 434 411 223 323 488 250 225 290 180 320 240 270 205 285 240 260 230 170 230 298 SIZE a) Using MICROSOFT EXCEL- run the above regression and copy the output into your assignment word document from which you can write down the least square regression line. Write down the least square regression line from that specific output. USE THE NAME OF VARIABLES WHEN YOU WRITE THE EQUATION. b) Interpret the slope and constant term with proper UNITS assigned. c) Comment on the explanatory power of the regression model from the required output. Copy that specific output into your assignment word document.

A real estate agent wanted to find the relationship between sale price of houses and the size of the house. She collected data on two variables recorded in the following table for 15 houses in Seattle. The two variables are PRICE= Sale price of houses in thousands of dollars SIZE= Area of the entire house in square feet. PRICE 455 278 463 327 505 264 445 346 487 289 434 411 223 323 488 250 225 290 180 320 240 270 205 285 240 260 230 170 230 298 SIZE a) Using MICROSOFT EXCEL- run the above regression and copy the output into your assignment word document from which you can write down the least square regression line. Write down the least square regression line from that specific output. USE THE NAME OF VARIABLES WHEN YOU WRITE THE EQUATION. b) Interpret the slope and constant term with proper UNITS assigned. c) Comment on the explanatory power of the regression model from the required output. Copy that specific output into your assignment word document.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 15PPS
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A real estate agent wanted to find the relationship between sale price of houses and the size of the house. She collected data on two variables recorded in the following table for 15 houses in Seattle. The two variables are PRICE= Sale price of houses in thousands of dollars SIZE= Area of the entire house in square feet. PRICE 455 278 463 327 505 264 445 346 487 289 434 411 223 323 488 250 225 290 180 320 240 270 205 285 240 260 230 170 230 298 SIZE a) Using MICROSOFT EXCEL- run the above regression and copy the output into your assignment word document from which you can write down the least square regression line. Write down the least square regression line from that specific output. USE THE NAME OF VARIABLES WHEN YOU WRITE THE EQUATION. b) Interpret the slope and constant term with proper UNITS assigned. c) Comment on the explanatory power of the regression model from the required output. Copy that specific output into your assignment word document. Now to increase the explanatory power of the model the real estate agent decides to look at the age of the house and the garden size. For the 15 houses in our sample the new variables are AGE= Age of the house in years, since it was built GARDEN= Area of the garden in acres. AGE 8 12 9 4 28 9. 13 7 16 8 19 17 1. 0. 1. 0. 2. 1. 2. 1. 2. 1. 3. 1. 0. 2. 3. GARDEN 4 8 7 2 1 1 7 7 4 d) Once these two new variables are added- run the new regression using MICROSOFT EXCEL. Copy the output into your assignment word document from which you can write down the new least square regression line. Write down the new least square regression line from that specific output. USE THE NAME OF VARIABLES WHEN YOU WRITE THE EQUATION. e) Interpret the coefficients with all the independent variables with proper UNITS. f) Comment on the explanatory power of the regression model from the required output. Copy the output into your assignment word document. g) Compare the two regression models that you have found using the appropriate parameter. which is better and why? Give proper reasoning. h) If you were to add a DUMMY VARIABLE in this regression model what would be an appropriate one? Why?
Transcribed Image Text:A real estate agent wanted to find the relationship between sale price of houses and the size of the house. She collected data on two variables recorded in the following table for 15 houses in Seattle. The two variables are PRICE= Sale price of houses in thousands of dollars SIZE= Area of the entire house in square feet. PRICE 455 278 463 327 505 264 445 346 487 289 434 411 223 323 488 250 225 290 180 320 240 270 205 285 240 260 230 170 230 298 SIZE a) Using MICROSOFT EXCEL- run the above regression and copy the output into your assignment word document from which you can write down the least square regression line. Write down the least square regression line from that specific output. USE THE NAME OF VARIABLES WHEN YOU WRITE THE EQUATION. b) Interpret the slope and constant term with proper UNITS assigned. c) Comment on the explanatory power of the regression model from the required output. Copy that specific output into your assignment word document. Now to increase the explanatory power of the model the real estate agent decides to look at the age of the house and the garden size. For the 15 houses in our sample the new variables are AGE= Age of the house in years, since it was built GARDEN= Area of the garden in acres. AGE 8 12 9 4 28 9. 13 7 16 8 19 17 1. 0. 1. 0. 2. 1. 2. 1. 2. 1. 3. 1. 0. 2. 3. GARDEN 4 8 7 2 1 1 7 7 4 d) Once these two new variables are added- run the new regression using MICROSOFT EXCEL. Copy the output into your assignment word document from which you can write down the new least square regression line. Write down the new least square regression line from that specific output. USE THE NAME OF VARIABLES WHEN YOU WRITE THE EQUATION. e) Interpret the coefficients with all the independent variables with proper UNITS. f) Comment on the explanatory power of the regression model from the required output. Copy the output into your assignment word document. g) Compare the two regression models that you have found using the appropriate parameter. which is better and why? Give proper reasoning. h) If you were to add a DUMMY VARIABLE in this regression model what would be an appropriate one? Why?
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