Regression analysis problems .
A town assessor was trying to determine a relationship between the size of a parcel of land (x) and the selling price (y) the assessor used the data in the following table.
Size in acres (x) Selling price in thousands of dollars (y)
a. Draw a scatter diagram. Does the selling price appear to increase as acreage increases?
b. Find the line of best fit for estimating the selling price given the acreage. Sketch the line on the same scatter diagram.
c. Estimate the selling price for a 1.7-acre piece of land.
d. Find the correlation coefficient and the coefficient of determination and interpret these values.
... for estimating the selling price given the acreage. Sketch the line on the same scatter diagram.
The general form of simple linear regression is Y= a + bX
Where Y is the dependent variable and X is the independent variable. a and be are known as the regression coefficients .They are estimated by the method of least squares. The estimates of a and b are given by