In a recent study, economists from Pennsylvania State University performed a sim

Question

In a recent study, economists from Pennsylvania State University performed a simple linear regression model using the least squares principle to determine if there was a relationship between annual taxes and the average price of a home. Their results are compiled below. Predictor Coefficient SE of Coefficient t Intercept 326072.15 49.95 4.24 Tax 1.09107 0.05872 18.58 ANOVA Source of Variation SS DF MS F Regression 11984585 1 11984585 345.24 Error 3644994 105 34714 Total 15629579 106 a. Determine the regression equationb. For a home with $3600 in annual taxes, what would you expect the selling price to be? c. Calculate and interpret the coefficient of determination..

Explanation / Answer

a) Price=326072.15+1.09107 Tax

b) Substitute Tax with $3600.

Price=$330000.002

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