Consider the data above for number of homes sold (SOLD) and number of years the

Question

Consider the data above for number of homes sold (SOLD) and number of years the realtor has been in business (YEARS). Suppose we want to predict the number of homes sold based on the number of years in business. (a) What is the response variable (dependent variable, outcome variable)? years SOLD (b) What is the predictor variable (Independent variable, factor)? YEARS SOLD (c) Use SPPS to do a linear regression analysis of these data. Write down the linear regression equation on your paper. If a realtor is in business for 5 years, how many homes are predicted to be sold?

Explanation / Answer

Using SPS , equation obtained is

Y = 0.7664*X + 1.692

Or no. of homes sold = 0.7664*no of years + 1.692

For x= 5, we get y = 0.7664*5+1.692 = 5.524

Thus, a retailer in business for 5 years is expected to sell 5.5 homes

Y = 0.7664*X + 1.692

Or no. of homes sold = 0.7664*no of years + 1.692

For x= 5, we get y = 0.7664*5+1.692 = 5.524

Thus, a retailer in business for 5 years is expected to sell 5.5 homes

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