A lawn care company tried to predict the demand for its service by zip code, using the housing density in the zip code area as a predictor. The owners obtained the number of houses and the geographic size of each zip code and calculated their sales per thousand homes and number of homes per acre.
a. Obtain the correlation between the two variables. What does its sign mean?
b. Obtain a prediction equation with sales as the dependent variable and density as the independent variable. Interpret the intercept (yes, we know the interpretation will be a bit strange) and the slope numbers.
c. Obtain a value for the residual standard deviation. What does this number indicate about the accuracy of prediction?

  • CreatedNovember 21, 2015
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