i need help understanding and interpreting what this graph means... what exactly does it tell about the x & y variables?
also what do these values for r, r-squared, p-value and regression equation mean for the data?
Solution-
Graph shows the fitted regression line in the scatter plot of data. As we see that data points are well scattered and does not seem to be in a straight line, we can deduce that the variables do not seem to be linearly related.
Regression equation is-
Y = 54.541 - 0.1852 X
Slope = -0.1852, This means that when value of X increases by 1 unit, then Y falls by 0.1852 units and vice versa.
Intercept = 54.541, This means that when X = 0, then expected value of Y = 54.541
value of R2 = 0.007
This means that only 0.7% of the total variation in the dependent variable is explained by the independent variable.
As this value is very much low, we can say that linear model is not a good fit here.
P-value is here to test the validity of the model and hypotheses-
H0 - Model is invalid
Ha- Model is valid
As p-value < 0.05, we can say that null hypothesis is rejected at 5% level of significance and we can say that model is valid here.
Thanks!
i need help understanding and interpreting what this graph means... what exactly does it tell about...
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Property Market_Val Sale_Price
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