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# Regression analysis problems

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A town assessor was trying to determine a relationship between the size of a parcel of land (x) and the selling price (y) the assessor used the data in the following table.

Size in acres (x) Selling price in thousands of dollars (y)
0.5 25
1.0 40
1.5 55
2.0 65
2.5 75
3.0 80

a. Draw a scatter diagram. Does the selling price appear to increase as acreage increases?
b. Find the line of best fit for estimating the selling price given the acreage. Sketch the line on the same scatter diagram.
c. Estimate the selling price for a 1.7-acre piece of land.
d. Find the correlation coefficient and the coefficient of determination and interpret these values.

https://brainmass.com/statistics/regression-analysis/regression-analysis-problems-245869

#### Solution Preview

A town assessor was trying to determine a relationship between the size of a parcel of land (x) and the selling price (y) the assessor used the data in the following table.

Size in acres (x) Selling price in thousands of dollars (y)
0.5 25
1.0 40
1.5 55
2.0 65
2.5 75
3.0 80

a. Draw a scatter diagram. Does the selling price appear to increase as acreage increases?

b. Find the line of best ...

#### Solution Summary

The solution provides step by step method for the calculation of regression model. . Formula for the calculation and Interpretations of the results are also included.

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