How does the price of a house depend on its size? Data from Saratoga, New York, on 1064 randomly selected houses that had been sold include data on price ($1000s) and size (1000 ft2), producing the following graphs and computer output:

a) Explain in words and numbers what the regression says.
b) The intercept is negative. Discuss its value, taking note of its P-value.
c) The output reports s = 53.79. Explain what that means in this context.
d) What€™s the value of the standard error of the slope of the regression line?
e) Explain what that means in this context.

Transcribed Image Text:

800 600 2 400 200. 1.25 2.50 3.75 5.00 Size (1000ft2) Dependent variable is: Price quared-: 59.5% s# 53.79 with 1064-2#1062 degrees of freedom Variable Coefficient SE(Coeff) t-Ratio P-Value Intercept 3.1169 Size 4.688 -0.665 0.5063 2.393 39.465 <0.0001 94.4539 300 -150 125 250 375 500 Predicted 400 300 200 100 200 Residuals ($1000s)