Final answer:
The regression of price on size of homes in Albuquerque can be performed using linear regression analysis.
Step-by-step explanation:
The regression of price on size of homes in Albuquerque is performed using linear regression analysis.
a. To draw a scatter plot, we plot the size of homes (independent variable) on the x-axis and the price (dependent variable) on the y-axis.
b. From inspection of the scatter plot, we can determine if there is a relationship between the variables. If the points on the scatter plot follow a roughly straight line, it suggests a linear relationship.
c. To calculate the least-squares line, we use the formula ŷ = a + bx, where ŷ is the predicted value of price, a is the y-intercept, b is the slope, and x is the size of homes.
d. To find the correlation coefficient, we use statistical software or formulas. If the correlation coefficient is close to 1 or -1, it indicates a strong correlation between the variables.