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Regression and Correlation Analysis..

1. A Realtor considers the relationship between home size and Market Price.
Home Size (1000's), Market Price (1,000s)
2.180 224
2.250 258
2.570 299
2.920 366
3.190 338
3.330 428

a. Determine the correlation coefficient.
b. Is there a strong relationship? If so determine the line of best fit.
c. Estimate what the market price should be for a home with 2250 square feet

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.