Business, 27.07.2020 01:01, elenagarcia123
Real estate investors, home buyers, and home owners often use the appraised value of a property as a basis for predicting sale price. Data on sale prices (y) and total appraised values (x) of 92 residential properties sold in 1999 in an upscale Tampa, FL neighborhood are located in the "tampalms" worksheet. Both values are in thousands of dollars. a) Calculate and interpret the correlation between x and y. b) Find the least squares estimates of the slope and intercept using R. c) Interpret the slope of the least squares line. d) Interpret the intercept of the least squares line. Does it have a practical meaning for this application? Explain. e) Conduct a test of model utility using = .05. f) Use the least-squares model to estimate the mean sale price of a property appraised at $300,000.
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