A regression analysis was done of residential property values in a portion of a

Question

A regression analysis was done of residential property values in a portion of a city. The dependent variable is Sale Price (Y) and the independent variable is Square Footage (X). Data for 157 properties were used in the regression. The results are listed below. Predicted Y = 96,600 + 22.5(X) R-square = .77 Interpret the meaning of the intercept coefficient

A. For every unit increase in Square Footage, the Sale Price decreases by $22.50.

C. Sale Price and Square Footage are not linearly related.

D. If the Square Footage is zero, the Sale Price is $96,600.

Explanation / Answer

D. If the Square Footage is zero, the Sale Price is $96,600.

Here, Y = 96,600 + 22.5(X)

square footage is X ,Y is sale price ,  If it is zero then

Y = 96600

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