# Correlation and regression analysis for cost of construction

Costs for recently constructed buildings in your city are as follows:

building sq ft cost of Building ($k)

12000 510

14000 565

15000 610

16000 650

18000 770

23000 890

25000 940

Will the coefficient of correlation be positive or negative?? Why??

Calculate the coefficient of correlation. What do you get??

The regression equation is y' = bx + a

What values do you get for b and a??

What is the regression equation??

Can we use the regression equation from above to estimate the cost of a building that is 5000 sq ft in size?? Why or why not??

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#### Solution Preview

Costs for recently constructed buildings in your city are as follows:

building sq ft cost of Building ($k)

12000 510

14000 565

15000 610

16000 650

18000 770

23000 890

25000 940

Will the coefficient of correlation be positive or negative?? Why??

Calculate the coefficient of correlation. What do you get??

The regression equation is y' = bx + a

What values do you get for b and a??

What is the regression equation??

Can we use the ...

#### Solution Summary

Step by step method for correlation and regression analysis for cost of construction.