Real-estate investors, home buyers, and homeowners often use the appraised value of property as a basis for
Question:
MINITAB output for Exercise 11.136
Data for Exercise 11.136
a. Propose a straight-line model to relate the appraised property value (x) to the sale price (y) for residential properties in this neighborhood.
b. A MINITAB scatter-plot of the data with the least squared line is shown at the top of the printout on p. 643. Does it appear that a straight-line model will be an appropriate fit to the data?
c. A MINITAB simple linear regression printout is also shown at the bottom of the printout on p. 643. Find the equation of the least squared line. Interpret the estimated slope and y-intercept in the words of the problem.
d. Locate the test statistic and p-value for testing H0: β1 = 0 against Ha: β1 > 0. Is there sufficient evidence (at a = .01) of a positive linear relationship between apprised property value (x) and sale price (y)?
e. Locate and interpret practically the values of r and r2 on the printout.
f. Locate and interpret practically the 95% prediction interval for sale price (y) on the printout?
Step by Step Answer: