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The data below represent: Y, the assessed value in thousands of dollars; X1, the

ID: 3236681 • Letter: T

Question

The data below represent: Y, the assessed value in thousands of dollars; X1, the size of the house in thousands of square feet; X2, whether or not the house has a swimming pool

Assessed Value   Square Feet    Swimming pool?

79.5                          1.69                    no

81.3                          1.79 yes                

71.5                          1.31                    yes

77.9                          1.52                    no

88.4                          1.99                    yes

72.7                          1.62                    no

85.6                          1.92                    yes

1. Give the equation of the regression line rounded to 3 decimal places.

2. Interpret the slope of square footage in the context of this problem. Decimal must be moved appropriately

3. Interpret the slope of swimming pool? in the context of this problem Decimal must be moved appropriately

4. Predict the assessed value of the house for a square footage of 1730 square feet and with a swimming pool Decimal must be moved appropriately

Explanation / Answer

(1) y = 39.645 + 23.016x1 + 1.720x2

(2) The assessed value increases by $23016 for every one square foot increase in the square footage

(3) The assessed value increases by $1720 for a house with swimming pool

(4) The predicted assessed value is $81182.

Regression Analysis R² 0.860 Adjusted R² 0.789 n   7 R   0.927 k   2 Std. Error   2.856 Dep. Var. y ANOVA table Source SS   df   MS F p-value Regression 199.8017 2   99.9009 12.24 .0197 Residual 32.6354 4   8.1589 Total 232.4371 6   Regression output confidence interval variables coefficients std. error    t (df=4) p-value 95% lower 95% upper std. coeff. Intercept 39.6446 0.000 x1 23.0158 5.2477 4.386 .0118 8.4459 37.5857 0.869 x2 1.7203 2.3062 0.746 .4972 -4.6828 8.1233 0.148 Predicted values for: y 95% Confidence Interval 95% Prediction Interval x1 x2 Predicted lower upper lower upper Leverage 1.73 1 81.1821 77.2033 85.1610 72.3095 90.0548 0.252
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