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The regression of price on size of homes in Albuquerque

A) Correlation analysis
B) Scatter plot analysis
C) Linear regression analysis
D) T-test analysis

1 Answer

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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.

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