What does the model predict will be the sale price of a comparable apartment in the same location with a floor area of 750 m2? How confident are you in this estimate? Explain.
What does the model predict will be the sale price of a comparable apartment in the same location with a floor area of 750 m2? How confident are you in this estimate? Explain.
Chapter9: Sequences, Probability And Counting Theory
Section9.7: Probability
Problem 2SE: What is a sample space?
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Question
Transcribed Image Text:ii)
What does the model predict will be the sale price of a comparable apartment in the same
location with a floor area of 750 m2? How confident are you in this estimate? Explain.
Transcribed Image Text:A councellor in a new residential area of outer Western Sydney, is reviewing apartment floor
areas and sale prices to determine if he could estimate the sale price from the apartment floor
area. The following data was collected for a sample of 10 recent sales of apartments.
a)
Area (m2)
460
500
540
540
580
610
620
680
730
790
Price ($000s)
230
236
242
246
200
250
256
262
250
274
You may use the following Excel print-out to answer the questions.
Regression Statistics
Descriptive Statistics
Multiple R
0.630
n =
10
R Square
0.397
605
Adjusted R Square
0.322
y =
244.6
Standard Error
16.566
s =
10761.111
Observations
10
s3 =
404.489
Sxy =
1314.444
Coeff
Stand Error
t Stat
P-value
Intercept
170.701
32.628
5.232
0.001
Area (m²)
0.122
0.053
2.295
0.051
i)
What is the equation of the regression line to predict Sale Price from floor area?
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