Question

Use the “home” data to build a regression model that predicts market as a function of square feet. Give a 99% confidence interval for the value of one square foot. (select the closest answer)

Home Market Value
House Age	Square Feet	Market Value
33	1,812	$90,000.00
32	1,914	$104,400.00
32	1,842	$93,300.00
33	1,812	$91,000.00
32	1,836	$101,900.00
33	2,028	$108,500.00
32	1,732	$87,600.00
33	1,850	$96,000.00
32	1,791	$89,200.00
33	1,666	$88,400.00
32	1,852	$100,800.00
32	1,620	$96,700.00
32	1,692	$87,500.00
32	2,372	$114,000.00
32	2,372	$113,200.00
33	1,666	$87,500.00
32	2,123	$116,100.00
32	1,620	$94,700.00
32	1,731	$86,400.00
32	1,666	$87,100.00
28	1,520	$83,400.00
27	1,484	$79,800.00
28	1,588	$81,500.00
28	1,598	$87,100.00
28	1,484	$82,600.00
28	1,484	$78,800.00
28	1,520	$87,600.00
27	1,701	$94,200.00
28	1,484	$82,000.00
28	1,468	$88,100.00
28	1,520	$88,100.00
27	1,520	$88,600.00
27	1,484	$76,600.00
28	1,520	$84,400.00
27	1,668	$90,900.00
28	1,588	$81,000.00
28	1,784	$91,300.00
27	1,484	$81,300.00
27	1,520	$100,700.00
28	1,520	$87,200.00
27	1,684	$96,700.00
27	1,581	$120,700.00

Answer 1

Use the “home” data to build a regression model that predicts market as a function of square feet. Give a 99% confidence interval for the value of one square foot. (select the closest answer)

The regression line is Market Value=32,673.220+35.036* square foot

The 99% CI for coefficient = (21.061, 49.011)

Excel Addon Megastat used.

Menu used: correlation/Regression ---- Regression Analysis.

Regression Analysis
	r²	0.535	n	42
	r	0.731	k	1
	Std. Error of Estimate	7287.723	Dep. Var.	Market Value
Regression output						confidence interval
variables		coefficients	std. error	t (df=40)	p-value	99% lower	99% upper
Intercept	a =	32,673.220	8,831.951	3.699	.0006	8,787.569	56,558.871
Square Feet	b =	35.036	5.167	6.780	3.80E-08	21.061	49.011
ANOVA table
Source	SS	df	MS	F	p-value
Regression	2,441,633,668.922	1	2,441,633,668.922	45.97	3.80E-08
Residual	2,124,436,092.983	40	53,110,902.325
Total	4,566,069,761.905	41