The accompanying table shows a portion of a data set that refers to the size of

Question

The accompanying table shows a portion of a data set that refers to the size of a home (in square feet) and its property taxes owed by the owner (in $) in an affluent suburb 30 miles outside New York City. a. Determine 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.) Final = __________ + ___________ size. b. Interpret the slope coefficient. As Property Taxes increase by 1 dollar, the size of the house increases by 6.81 ft. As Size increases by 1 square foot, the property taxes are predicted to increase by $6.81. c. Predict the property taxes for a 1500-square-foot home. (Round your answers to 2 decimal places.) Final _____________

Explanation / Answer

a) Final = 6505 + 6.81*Size

b) As the size of property increases by 1 square feet, the taxes increase by $6.81

c) Using the regression equation from a), point estimate for 1500 sq ft home

   Taxes = 6505 + 6.81*1500 = $16,720

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