Data from a town, on 20 randomly selected houses that have been sold, include da
ID: 3331091 • Letter: D
Question
Data from a town, on 20 randomly selected houses that have been sold, include data on price ($1000s) and size (1000 ft). These data produce the graphs and computer output from the accompanying table. Use the given results to complete parts a through e. Click the icon to view the computer output Click the icon to view the plots. a) Explain in words and numbers what the regression says. First explain in numbers. What is the regression model? Now explain in words. What does the regression model say? O A. The model suggests that the price of homes increases about 4.28 thousand square feet per dollar O B. The model suggests that the price of homes increases about 95.56 thousand square feet per dollar ° C. The model suggests that homes cost about $95,560 per thousand square feet. 0 D. The model suggests that homes cost about $4.280 per thousand square feet. b) The intercept is negative. Discuss its value, taking note of the P-value The value of the intercept is (Do not round.) Does this value make any sense?Explanation / Answer
a) The regression model is
Prize = -4.28 + 95.56 * Size
When one unit change in dependent variable then change in independent variable is same as value of slope .
Here slope value= 95.56
So correct option is B
b) Intercept value = -4.28
the p-value corresponding to intercept is 0.5499 which is very high as any reasonable level of significance.
So we can say that intercept = 0
negative value of intercept is not make sense because for no area there is no any prize.
So correct option is B
c) The correct option is B.
Because the predicted prizes based on sizes varies with the standard deviation in thousand(unit of prize).
d) Standard error of slope = 2.58
e) The correct option is A)
Because the slope vary with its corresponding standard error.
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