Florida condominiums are popular winter retreats for many North Americans. In re

Question

Florida condominiums are popular winter retreats for many North Americans. In recent years, the prices have steadily increased. A real estate agent wanted to know why prices of similar-sized apartments in the same building vary. A possible answer lies in the floor. It may be that the higher the floor, the greater the sale price of the apartment. He recorded the price (in $1,000s) of 1,200 sq. ft. condominiums in several buildings in the same location that have sold recently and the floor number of the condominium. a. Determine the regression line. b.What do the coefficients tell you about the relationship between the two variables?

Explanation / Answer

In the following procedure, xi and yi represent all the x and y data points. 1. Square all the values 2. Find the sum of all the xi² and all the yi² 3. Find Sxi and Syi 4. Calculate the following: Xbar = average of the x values Ybar = average of the y values Sxx = Sxi² - (Sxi)²/n Syy = Syi² - (Syi)²/n Sxy = Sxiyi - (Sxi)(Syi)/n 5. b (the slope) = Sxy/Sxx a (the y-intercept) = Ybar - bXbar Then your model is y(hat) = a +bx

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