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    Correlation and regression analysis for cost of construction

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    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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    https://brainmass.com/statistics/regression-analysis/correlation-regression-analysis-cost-construction-298025

    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.

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