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Mathematics, 15.02.2021 20:40 dmoore6859
The following data on sale price, size, and land-to-building ratio for 10 large industrial properties appeared in a paper.
Property Sale Price Size Building Land-to-building
(millions of dollars) (thousands of sq. feet) ratio
1 10.5 2166 1.9
2 2.5 751 3.6
3 30.4 2423 3.5
4 1.7 225 4.8
5 20.0 3916 1.7
6 8.0 2866 2.4
7 10.1 1698 3.1
8 6.8 1047 4.8
9 5.9 1107 7.7
10 4.4 406 17.1
(a) Calculate the value of the correlation coefficient between sale price and size. (Give the answer to three decimal places.)
r =
(b) Calculate the value of the correlation coefficient between sale price and land-to-building ratio. (Give the answer to three decimal places.)
r =
(c) If you wanted to predict sale price and you could use either size or land-to-building ratio as the basis for making predictions, which would you use?
A) Size
B)Land-to-building ratio
(d) Based on your choice in Part (c), find the equation of the least-squares regression line you would use for predicting y = sale price. (Give answers to three decimal places.)
y = + x
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