Question

When homeowners list their home for sale, they begin by listing it for a price that is greater than what they expect to receive. The longer a home is on the market, without being sold, the more the price drops. A realtor selects 50 homes that are currently listed for sale. A scatterplot reveals that the association between x = the number of days the home is on the market and y = the current asking price ($) is fairly linear and can be modeled by the equation \hat{y} = 245,000-200x

y
^
​ =245,000−200x. Additionally, 85.4% of the variation in the current asking price can be explained by this linear model. Which of the following is the value of the correlation (r) for the relationship between x and y?

Answer 1

Answer:−0.924

Explanation:

The correlation is the square root of the coefficient of determination (r2), which is 0.854. The correlation also takes the same sign as the slope, so the correlation is r=-\sqrt{0.854}=-0.924r=− 0.854 =−0.924

Answer 2

0.924

Explanation:

r: coefficient of corelation in a linear regressive model. It is a measure of linera association between models/

r²: It tells how much variation in x can be explained by linear regression of y on x.

So, 85.4% or 0.854 is r² value

coefficient of relation, r= √0.854=0.924