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.

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.)

Predict the property taxes for a 1,500-square-foot home. (Round your answer to 2 decimal places.)

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.

Explanation / Answer

Regression Analysis: Property Taxes versus Size (in square feet)

The regression equation is
Property Taxes = 5747 + 7.46 Size (in square feet)

Predictor Coef SE Coef T P
Constant 5747 3701 1.55 0.138
Size (in square feet) 7.459 1.307 5.70 0.000

S = 6299.89 R-Sq = 64.4% R-Sq(adj) = 62.4%

Analysis of Variance

Source DF SS MS F P
Regression 1 1291664227 1291664227 32.54 0.000
Residual Error 18 714395333 39688630
Total 19 2006059561

Slope coefficient:

The slope (b1 = 7.46) is the change in Property Taxes when Size increases by 1. That is, when the size increases by one unit, the property taxes increases by .46 units.

Predicted Values for New Observations-1500

New Obs Fit SE Fit 95% CI 95% PI
1 16934 2030 (12671, 21198) (3029, 30840)

Property Taxes = 5747 + 7.46 *1500=16934

Hope this will be helpful. Thanks and God bless you :-)

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