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SunnieeCA SunnieeCA
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3 weeks ago
Use the following to answer the questions below:

A quantitatively savvy, young couple is interested in purchasing a home in northern New York. They collected data on houses that had recently sold in the two towns they are considering. The variables they collected are the selling price of the home (in thousands of dollars), the size of the home (in square feet), the age of the home (in years), and the town in which the house is located (coded 1 = Canton and 0 = Potsdam). Output from their multiple regression analysis is provided.

The regression equation is
Price (in thousands) = 69.2 + 0.0627 Size (sq. ft.) - 0.632 Age + 1.6 Town

PredictorCoefSE CoefTP
Constant69.2325.102.760.008
Size (sq. ft.)0.062670.010246.120.000
Age-0.63190.1328-4.760.000
Town1.6512.150.140.893
S = 40.0763        R-Sq = 59.3%        R-Sq(adj) = 56.5%

Analysis of Variance

SourceDFSSMSFP
Regression31029363431221.360.000
Residual Error44706691606
Total47173605

A dotplot of the residuals and a scatterplot of the residuals versus the predicted values are provided. Discuss whether the conditions for a multiple linear regression are reasonable by referring to the appropriate plots.

A dotplot depicts the results of the conditions for a multiple linear regression. The horizontal axis is labeled, Residuals and has markings from negative 60 to 90 in increments of 30. The dots are plotted as follows: 1 dot above negative 80; 2 dots above negative 70; 1 dot above negative 50; 4 dots above negative 40; 5 dots above negative 30, and negative 20; 6 dots above negative 10; 4 dots above 0; 2 dots above 10; 6 dots above 20; 2 dots above 30; 3 dots above 40, and 50; 2 dots above 60; and 1 dot above 70, and 100. There are no dots above negative 60, and 90. All values are approximate.
A scatterplot with regression line shows the relationship between predicted selling price and residual. The horizontal axis is labeled, Predicted Selling price and has markings from 50 to 250 in increments of 50. The vertical axis is labeled, Residual and has markings from negative 100 to 100 in increments of 50. The regression line starts from (48, 0), extends horizontally to the right, and ends at (275, 0). The dots are densely scattered throughout the regression line, such that a few dots lie above the regression line, a few dots lie below the regression line, and a few dots lie on the regression line. The dots are plotted between the points, 75 to 270 on the horizontal axis and between the points, negative 90 to 100 on the vertical axis. The concentration of the dots is more between the points 75 and 175 on the horizontal axis and between the points, negative 50 and 50 on the vertical axis. Two outliers lie are at the points, (130, 100) and (270, 70). All values are approximate.
Textbook 
Statistics: Unlocking the Power of Data

Statistics: Unlocking the Power of Data


Edition: 3rd
Authors:
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Gimor1220Gimor1220
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3 weeks ago
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SunnieeCA Author
wrote...

3 weeks ago
Smart ... Thanks!
wrote...

Yesterday
this is exactly what I needed
wrote...

2 hours ago
Good timing, thanks!
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