Question

The accompanying table shows a portion of a data set that refers to the property taxes owed by a homeowner (in $) and the size of the home (in square feet) in an affluent suburb 30 miles outside New York City. XC Click here for the CSV Data File Taxes 21,918 17,318 Size 2,359 2,340 29, 229 2,807 a. Estimate the sample regression equation that enables us to predict property taxes on the basis of the size of the home. (Round your answers to 2 decimal places.) TaxesSize b. Interpret the slope coefficient As Size increases by 1 square foot, the property taxes are predicted to increase by $6.85. As Property Taxes increase by 1 dollar, the size of the house increases by 6.85 ft c. Predict the property taxes for a 1,200-square-foot home. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) Taxes

Answer 1

a)applying regression on above data:

Taxes =6581.70+6.86*Size

b)

as size increases by 1 square foot, the property taxes are predicted to increase by $ 6.85

c)

Taxes =3169.10