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    Estimated Regression Equation

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    The typical household income and typical home price for a sample of 18 cities follows (see attachment - data are in thousands of dollars).

    PART A:
    a. Use these data to develop an estimated regression equation that could be used to estimate the typical home price for a city given the typical household income.
    b. Compute r2 [r squared]. Would you feel comfortable using this estimated regression equation to estimate the typical home price for a city?
    c. Estimate the typical home price for a city that has a typical household income of $95,000.00.

    PART B:
    Refer to the above exercise, where an estimated regression equation was developed relating typical household income and typical home price. Test whether the typical household income for a city and the typical home price are related at the .01 level of significance.

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    https://brainmass.com/statistics/regression-analysis/estimated-regression-equation-22847

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    Solution Summary

    The typical household income and typical home price for a sample of 18 cities follows (see attachment - data are in thousands of dollars).

    PART A:
    a. Use these data to develop an estimated regression equation that could be used to estimate the typical home price for a city given the typical household income.
    b. Compute r2 [r squared]. Would you feel comfortable using this estimated regression equation to estimate the typical home price for a city?
    c. Estimate the typical home price for a city that has a typical household income of $95,000.00.

    PART B:
    Refer to the above exercise, where an estimated regression equation was developed relating typical household income and typical home price. Test whether the typical household income for a city and the typical home price are related at the .01 level of significance.

    $2.49

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