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Interpret the slope coefficient, test the hypothesis

See attached file.

The file housing.xls contains sample data on the assessed price of a house (in $1,000s) and the house's floor space (in square feet). Pls Do with Excel, except where stated, and explain your results.

a. Determine the proper dependent variable and then plot a scatter diagram with the dependent variable on the vertical axis. Then, assuming a linear relationship, use the least squares method to find the regression coefficients b0 and b1. What is the regression equation?

b. Interpret the estimated slope coefficient in a sentence. Does the intercept have a meaning in your regression? Explain.

c. Test by hand the null hypothesis that the slope coefficient is equal to zero at the 99% level of confidence. Show your steps.

d. Give a 95% confidence interval for b1. Interpret this interval.

e. Interpret the estimated coefficient of determination.

f. By hand predict the price for a 7,200 square foot house. Then use Excel to construct the prediction interval of an individual 7,200 square foot house. After reporting the results comment on the appropriateness of this particular forecast.

note- Use a 0.05 level of significance
unless otherwise stated.

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Solution Summary

A Complete, Neat and Step-by-step Solution is provided in the attached file.