(Answered) The following data on sale price size and landto-building

Engineering

The following data on sale price, size, and landto-building ratio for 10 large industrial properties appeared in the paper "Using Multiple Regression

Analysis in Real Estate Appraisal" (Appraisal Journal [2002]: 424-430):

1459_Analysis in Real Estate Appraisal.png

a. Calculate and interpret the value of the correlation coefficient between sale price and size.

b. Calculate and interpret the value of the correlation coefficient between sale price and land-to-building ratio.

c. If you wanted to predict sale price and you could use either size or land-to-building ratio as the basis for making predictions, which would you use? Explain.

d. Based on your choice in Part (c), find the equation of the least-squares regression line you would use for predicting y 5 sale price.

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