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
21913	2357
17307	2531
18258	1906
15606	1061
43962	5639
33679	2520
15197	2165
16733	1825
18211	2139
16061	1268
15194	1261
36018	3060
31036	2869
42098	3448
14377	1574
38934	3919
25341	3949
22969	2514
16241	3505
29254	2840

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.)
c. Predict the property taxes for a 1,500-square-foot home. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.)      

Answer 1

Ans:

	Size,x	Taxes,y
1	2357	21913
2	2531	17307
3	1906	18258
4	1061	15606
5	5639	43962
6	2520	33679
7	2165	15197
8	1825	16733
9	2139	18211
10	1268	16061
11	1261	15194
12	3060	36018
13	2869	31036
14	3448	42098
15	1574	14377
16	3919	38934
17	3949	25341
18	2514	22969
19	3505	16241
20	2840	29254
mean	2617.500	24419.450
SD	1105.455	9929.713
r	0.770
slope	6.92
intercept	6315.95

Regression equation:

Taxes=6.92*size+6315.95

When size=1500

Taxes=6.9163*1500+6315.9523=16690.40