Statistics
Essay title: Statistics
Lind, Chapter 13, Exercise 42
A sample of 12 homes sold last week in St. Paul, Minnesota, is selected. Can we conclude that as the size of the home (reported below in thousands of square feet) increases, the selling price (reported in $ thousands) also increases?
a. Compute the coefficient of correlation.
Coefficients
Standard Error
t Stat
P-value
Intercept
59.95717345
28.65750326
2.092198085
0.062896401
Home Size
31.69164882
24.44661008
1.296361692
0.223968044
The formula for the coefficient of correlation, . = 0.076.
Compute the coefficient of correlation is .308
b. Determine the coefficient of determination.
Regression Statistics
Multiple R
0.37931016
R Square
0.143876197
Adjusted R Square
0.058263817
Standard Error
15.25058359
Observations
The coefficient of determination is 14%.
Determine the coefficient of determination is .095
c. Can we conclude that there is a positive association between the size of the home and the selling price? Use the .05 significance level.
Yes, there is a positive correlation between the variables.
Can we conclude that there is a positive association between the size of the home and the selling price?