Question

The results of a regression analysis for 120 homes relating yequalsselling price​ (in dollars) to xequalsthe size of the house​ (in square​ feet) are available below. A​ 95% confidence interval for the slope is ​(46​,86​). The 120 houses included in the data set had sizes ranging from 430 square feet to 4050 square feet. Complete parts a and b below. LOADING... Click the icon to view the regression analysis results. a. Interpret what the confidence interval implies for a​ one-unit increase in the size of the house. A. The selling price of any house increases between ​$46 to ​$86 for every 1 square foot increase in size. Your answer is not correct.B. On​ average, the size of a house increases between 46 to 86 square feet for every​ $1 increase in selling price. C. The size of any house increases between 46 to 86 square feet for every​ $1 increase in selling price. D. On​ average, the selling price of a house increases between ​$46 to ​$86 for every 1 square foot increase in size. This is the correct answer. b. Repeat part​ a, now using a more meaningful increase of 100 square feet in the size of a house. A. The size of any house increases between 4600 to 8600 square feet for every​ $100 increase in selling price. Your answer is not correct.B. The selling price of any house increases between ​$4600 and ​$8600 for every 100 square foot increase in size. C. On​ average, the selling price of a house increases between ​$4600 and ​$8600 for every 100 square feet increase in size. This is the correct answer.D. On​ average, the size of a house increases to between 4600 to 8600 square feet for every​ $100 increase in selling price. Question is complete. Tap on the red indicators to see incorrect answers.

Answer 1

a. Interpret what the confidence interval implies for a​ one-unit increase in the size of the house.

The correct interpretation of confidence interval is,

For every 1 square foot increase in size, the average increase in selling price of a house will increase by the ($46​, $86​)

D. On​ average, the selling price of a house increases between ​$46 to ​$86 for every 1 square foot increase in size.

b. Repeat part​ a, now using a more meaningful increase of 100 square feet in the size of a house.

For every 100 square foot increase in size, the average increase in selling price of a house will increase by the ($46​ * 100, $86​ * 100)

C. On​ average, the selling price of a house increases between ​$4600 and ​$8600 for every 100 square feet increase in size.