Question

The accompanying table shows a portion of a data set that refers to the property taxes owed by a homeowner (in $) and the size of the home (in square feet) in an affluent suburb 30 miles outside New York City.

Taxes	Size
21980	2357
17392	2471
18216	1895
15691	1117
43957	5728
33624	2536
15136	2188
16699	1926
18218	2135
16036	1409
15145	1450
36050	3099
31048	2742
42030	3353
14435	1649
38946	4001
25309	3916
22934	2438
16152	3585
29200	2804

a. Estimate 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.)

TaxesˆTaxes^ =  +  Size.

b. Interpret the slope coefficient.

• As Size increases by 1 square foot, the property taxes are predicted to increase by $6.91.

• As Property Taxes increase by 1 dollar, the size of the house increases by 6.91 ft.

c. Predict the property taxes for a 1,600-square-foot home. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.)

  TaxesˆTaxes^               

Answer 1