What factors affect the sale price of Oceanside condominium units? To answer this question, the following data were recorded for each of the n= 105 units sold at action: y=sale price (in thousands of dollars) x, = floor height (1, 2, 3, ..., 8) x 1 if ocean view, 0 is bay view The least squares prediction equation is y = 17.770 - 0.073X, + 3.137X,. Interpret the estimated effect of an ocean view. The expected sale price increases by $20,907 for units with an ocean view, holding floor height constant. O The expected sale price increases by $3.14 for units with an ocean view, holding floor height constant. The expected sale price increases by $3137 for units with an ocean view, holding floor height constant. The average sale price for units with an ocean view is $20,907, holding floor height constant. The correlation between sale price and view is 3.137.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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