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
21,987	2,352
17,343	2,362
⋮	⋮
29,272	2,878

Taxes	Size
21987	2352
17343	2362
18279	1776
15645	1118
43954	5712
33653	2592
15105	2134
16749	1905
18239	2024
16048	1389
15135	1381
36016	3028
31083	2771
42000	3374
14370	1556
38953	3971
25373	3934
22971	2321
16169	3557
29272	2878

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.)

taxes= ____ + ____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 1,200-square-foot home. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.)

Taxes=

Answer 1