An economist wishes to predict the market value of owner-occupied homes in small midwestern cities. She has
Question:
a. Plot the market value of houses (hseval) versus the size of houses (sizense), and then versus the tax rates (taxrate). Note any unusual patterns in the data.
b. Prepare regression analyses for the two predictor variables. Which variable is the stronger predictor of the value of houses?
c. A business developer in a midwestern state has stated that local property tax rates in small towns need to be lowered because if they are not, no one will purchase a house in these towns. Based on your analysis in this problem, evaluate the business developer's claim.
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Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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