After being hired as a financial advisor for a large real estate company, you have been tasked with exploring trends between home size (square ft) and property taxes to see if a relationship exists and if that trend can be applied outside of just the sample data. To simplify your calculations, you have only been asked to test a random sample of 10 homes as the “sample data” (listed below). This will be the data that you will analyze. Sample Data Random Sample Property Taxes Size 1 18229 1890 2 43988 5665 3 15187 2200 4 18225 2092 5 16073 1380 6 31043 2876 7 14398 1566 8 16200 3565 9 35478 2698 10 16699 2005 Within the Excel spreadsheet, use the Excel tools/functions to calculate the correlation coefficient, test statistic, and p-value. You will also use Excel to generate a scatterplot of your sample data with a linear regression (line of best fit) model. All of these results should be shown on the Excel spreadsheet. (use the Excel functions/tools for the test rather than just typing numbers into the cells.) As your boss is not interested in sorting through data on a spreadsheet, you will then write up a professional report summarizing your findings. This report should include your scatterplot graph and any necessary tables. Within your report, in addition to any appropriate introductions, conclusions, citations, etc. also discuss the following: • Interpret the correlation coefficient. • Discuss the hypothesis in order to determine whether the population correlation between the two variables differs from zero. • What are the results of the hypothesis test in the context of this task (at the 5% significance level)? • What is the sample regression equation that could enable your to predict property taxes on the basis of the size of a home? • Using this, predict the property taxes for a home that is 1,500 square ft. This should be written as if you were writing a professional report to your employer, not an outline of tasks you did for a project in stat class.
After being hired as a financial advisor for a large real estate company, you have been tasked with exploring trends between home size (square ft) and property taxes to see if a relationship exists and if that trend can be applied outside of just the sample data.
To simplify your calculations, you have only been asked to test a random sample of 10 homes as the “sample data” (listed below). This will be the data that you will analyze.
Sample Data
| Random Sample | Property Taxes | Size |
| 1 | 18229 | 1890 |
| 2 | 43988 | 5665 |
| 3 | 15187 | 2200 |
| 4 | 18225 | 2092 |
| 5 | 16073 | 1380 |
| 6 | 31043 | 2876 |
| 7 | 14398 | 1566 |
| 8 | 16200 | 3565 |
| 9 | 35478 | 2698 |
| 10 | 16699 | 2005 |
Within the Excel spreadsheet, use the Excel tools/
As your boss is not interested in sorting through data on a spreadsheet, you will then write up a professional report summarizing your findings. This report should include your scatterplot graph and any necessary tables. Within your report, in addition to any appropriate introductions, conclusions, citations, etc. also discuss the following:
• Interpret the correlation coefficient.
• Discuss the hypothesis in order to determine whether the population correlation between the two variables differs from zero.
• What are the results of the hypothesis test in the context of this task (at the 5% significance level)?
• What is the sample regression equation that could enable your to predict property taxes on the basis of the size of a home?
• Using this, predict the property taxes for a home that is 1,500 square ft.
This should be written as if you were writing a professional report to your employer, not an outline of tasks you did for a project in stat class.
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