Question: The following table provides information on the living area in

The following table provides information on the living area (in square feet) and price (in thousands of dollars) of 10 randomly selected houses listed for sale in a city.
a. Find the least squares regression line ŷ = a + bx. Take living area as an independent variable and price as a dependent variable.
b. Give a brief interpretation of the values of a and b.
c. Compute r and r2 and explain what they mean.
d. Predict the price of a house with 2700 square feet of living area.
e. Compute the standard deviation of errors.
f. Construct a 99% confidence interval for B.
g. Testing at a 1% significance level, can you conclude that B is different from zero?
h. Using α = .01, can you conclude that the correlation coefficient is different from zero?

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  • CreatedAugust 25, 2015
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