Sol Tutorial 3

# 10505464x r085 theslopeispositive a yhat92770x

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Unformatted text preview: o Statistics Tutorial 3 y‐hat = ‐0.105 + 0.5464X r = 0.85 The slope is positive. a. y‐hat = 9.2+77.0X y‐hat (x=2) = 9.2 + 77.0(2) = 163.2 y‐hat (x=3) = 9.2 + 77.0(3) = 240.2 b. Slope = 77.0 From part a, one unit increase will have 240.2‐163.2 = 77.0 units increase in the home price. For every increase of one unit (1000 square feet) in the size of the house, the home prices are predicted to increase by 77.0 units (\$77,000). d. y‐hat (x=3) = 240.2 residual = y – y‐hat = 300 – 240.2 = 59.8 or \$59,800. The residual is a prediction error, the selling price is higher than the predicted home price using the regression line. 2 d. For Canada, x = 34 y‐hat = ‐0.105 + 0.5464(34) = 1...
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