A realtor studies the relationship between the size of a house (in square feet)
ID: 3372120 • Letter: A
Question
A realtor studies the relationship between the size of a house (in square feet) and the property taxes owed by the owner. He collects the following data on six homes in an affluent suburb 60 miles outside of New York City. Use Table 2.
Calculate sxy and rxy. (Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places.)
Calculate the value of the test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)
A realtor studies the relationship between the size of a house (in square feet) and the property taxes owed by the owner. He collects the following data on six homes in an affluent suburb 60 miles outside of New York City. Use Table 2.
Explanation / Answer
The statistical software output for this problem is:
Simple linear regression results:
Dependent Variable: Property Taxes ($)
Independent Variable: Square Feet
Property Taxes ($) = -3554.0053 + 4.417882 Square Feet
Sample size: 6
R (correlation coefficient) = 0.91438808
R-sq = 0.83610556
Estimate of error standard deviation: 2895.145
Parameter estimates:
Analysis of variance table for regression model:
Hence,
b) sxy = 2895.15
rxy = 0.91
d -1) Test statistic = 20.41
[The details are missing whether it is asking for test statistic of entire regression or only for slope. I have written the test statistic for entire regression. In case if it is asking for slope, the test statistic will be 4.52]
Parameter Estimate Std. Err. Alternative DF T-Stat P-value Intercept -3554.0053 3370.0453 ? 0 4 -1.0545868 0.3511 Slope 4.417882 0.97799285 ? 0 4 4.5172948 0.0107