In a study of housing demand, the county assessor is interested in developing a regression model to estimate the market value of residential property within his jurisdiction. The assessor feels that the most important variable affecting selling price is the size of house. He randomly selected 15 houses and measured both the selling price and size, as shown in the following table
A. Plot the date
b. Determine the estimated regression line. Give an economic interpretation of the estimated slob (b) coefficient.
c. Determine whether size is a statistically significant variable in estimating selling price
d. Calculate the coefficient of determination
e. Perform an F-test of the overall significance of the results
|
Observation
|
Selling price
|
Size
|
|
1
|
265.2
|
12
|
|
2
|
279.6
|
20.2
|
|
3
|
311.2
|
27
|
|
4
|
328
|
30
|
|
5
|
352
|
30
|
|
6
|
281.2
|
21.4
|
|
7
|
288.4
|
21.6
|
|
8
|
292.8
|
25.2
|
|
9
|
356
|
37.2
|
|
10
|
263.2
|
14.4
|
|
11
|
272.4
|
15
|
|
12
|
291.2
|
22.4
|
|
13
|
299.6
|
23.9
|
|
14
|
307.6
|
26.6
|
|
15
|
320.4
|
30.7
|