Question

# Simple regression analysis The following data were collected to study the relationship between the sale price,...

Simple regression analysis
The following data were collected to study the relationship between the sale price, y and the total appraised value, x, of a residential property located in an upscale neighborhood.

 Property x y x2 y2 xy 1 2 2 4 4 4 2 3 5 9 25 15 3 4 7 16 49 28 4 5 10 25 100 50 5 6 11 36 121 66

Draw a scatter diagram of the sale price and the total appraised values

Calculate the Pearson’s coefficient of correlation, r

Describe the relationship between the sale price and the total appraised value

Find a regression equation of the sale price based on the total appraised value

Predict the sale price if the sale price and the total appraised value is 3.

Scatter plot with regression line

Perfect positive correlation between x and y

for x= 3 predicted price given by

y=-2.2+2.3*(3)=-2.2+6.9=4.7

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