a. Estimate the sample regression equation that enables us to predict property taxes on the basis of the size of the home. (Round your answers to 2 decimal places.) TaxesˆTaxes^ = + Size. b. Interpret the slope coefficient. multiple choice As Property Taxes increase by 1 dollar, the size of the house increases by 6.78 ft. As Size increases by 1 square foot, the property taxes are predicted to increase by $6.78. c. Predict the property taxes for a 1,500-square-foot home. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.)
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
The accompanying table shows a portion of a data set that refers to the property taxes owed by a homeowner (in $) and the size of the home (in square feet) in an affluent suburb 30 miles outside New York City.
Click here for the Excel Data File
| Taxes | Size |
| 21,934 | 2,345 |
| 17,334 | 2,434 |
| ⋮ | ⋮ |
| 29,294 | 2,861 |
a. Estimate the sample regression equation that enables us to predict property taxes on the basis of the size of the home. (Round your answers to 2 decimal places.)
TaxesˆTaxes^ = + Size.
b. Interpret the slope coefficient.
multiple choice
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As Property Taxes increase by 1 dollar, the size of the house increases by 6.78 ft.
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As Size increases by 1 square foot, the property taxes are predicted to increase by $6.78.
c. Predict the property taxes for a 1,500-square-foot home. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.)
TaxesˆTaxes^
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