Question

The accompanying table shows a portion of a data set that refers to the property taxes owed by a homeowner (in $) and the size of the home (in square feet) in an affluent suburb 30 miles outside New York City.

Taxes	Size
21913	2357
17307	2531
18258	1906
15606	1061
43962	5639
33679	2520
15197	2165
16733	1825
18211	2139
16061	1268
15194	1261
36018	3060
31036	2869
42098	3448
14377	1574
38934	3919
25341	3949
22969	2514
16241	3505
29254	2840

a. Estimate the sample regression equation that enables us to predict property taxes on the basis of the size of the home.

TaxesˆTaxes^ = ____ + _____ Size.

c. Predict the property taxes for a 1,500-square-foot home. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.)

  Taxesˆ_______

Answer 1

	Size X	Taxes Y	X * Y
	2357	21913	51648941	5555449	480179569
	2531	17307	43804017	6405961	299532249
	1906	18258	34799748	3632836	333354564
	1061	15606	16557966	1125721	243547236
	5639	43962	247901718	31798321	1932657444
	2520	33679	84871080	6350400	1134275041
	2165	15197	32901505	4687225	230948809
	1825	16733	30537725	3330625	279993289
	2139	18211	38953329	4575321	331640521
	1268	16061	20365348	1607824	257955721
	1261	15194	19159634	1590121	230857636
	3060	36018	110215080	9363600	1297296324
	2869	31036	89042284	8231161	963233296
	3448	42098	145153904	11888704	1772241604
	1574	14377	22629398	2477476	206698129
	3919	38934	152582346	15358561	1515856356
	3949	25341	100071609	15594601	642166281
	2514	22969	57744066	6320196	527574961
	3505	16241	56924705	12285025	263770081
	2840	29254	83081360	8065600	855796516
Total	52350	488389	1438945763	160244728	13799575627

Equation of regression line is


b = 6.916

a =( 488389 - ( 6.9163 * 52350 ) ) / 20
a = 6315.952
Equation of regression line becomes

When X = 1500
= 6315.952 + 6.916 X
= 6315.952 + 6.916 * 1500
= 16689.95