Interpretations A regression performed to predictselling price of houses found the equationPrice = 169,328 + 35.3 Area + 0.718 Lotsize - 6543 Agewhere Price is in dollars, Area is in square feet, Lotsize isin square feet, and Age is in years. The R2 is 92%. One ofthe interpretations below is correct. Which is it? Explainwhat’s wrong with the others.a) Each year, a house Ages it is worth $6543 less.b) Every extra square foot of Area is associated with anadditional $35.30 in average price, for houses with agiven Lotsize and Age.c) Every dollar in price means Lotsize increases0.718 square feet.d) This model fits 92% of the data points exactly.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
selling price of houses found the equation
Price = 169,328 + 35.3 Area + 0.718 Lotsize - 6543 Age
where Price is in dollars, Area is in square feet, Lotsize is
in square feet, and Age is in years. The R2
the interpretations below is correct. Which is it? Explain
what’s wrong with the others.
a) Each year, a house Ages it is worth $6543 less.
b) Every extra square foot of Area is associated with an
additional $35.30 in average price, for houses with a
given Lotsize and Age.
c) Every dollar in price means Lotsize increases
0.718 square feet.
d) This model fits 92% of the data points exactly.
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