Question

For the following questions (17-18), use the following regression output. The dependent variable is Assessed Value (5) and the independent variable is Floor Space (square feet) SUMMARY OUTPUT Regression Statistics Multiple 0.0084 R Square 0.9377 Adjusted R Square 00350 Standard Emor 116 5093 Observations 32 ANOVA Significance F 1.23E-19 Regression Residual Total 1 30 31 SS MS F 8035351.603 6036862 451.6772 4008959721 13303.2 6438747.875 Coefficients 16267 0.3087 Intercept Floor space Standard Error 5428 0.010 Star Rvale 2.980 0.006686 21 253 1235-10 Upper 273.92 0.34 Lower 95% 51:40 028 17: What is the correct interpretation of the slope? A For every one square foot increase the assessed value increases by 5162.66 B For every one square foot increase the assessed value decreases by $162.66 C: For every one square foot increase the assessed value decreases by 5.3067 D For everyone square foot increase the assessed value increases by 5.3067 18. The couffichest of determination is A: 9684 B: .9377 c: 9356 D None of the above

Answer 1

Q.17 Answer: D. For every one square foot increases, the assesed value increases by $.3067

Explaination: From given output, regression equation is,

Assesed value= 162.67 + 0.3067*Floor space

Here, Slope = 0.3067. That means, for every one square foot increases, the assesed value increases by $.3067

Q.18 Answer: B. 0.9377

Explaination: Coefficient of determination = R square= 0.9377