Question

In: Statistics and Probability

Determine the linear correlation coefficient between square footage and asking price. Square Footage, x Selling Price...

Determine the linear correlation coefficient between square footage and asking price.

Square Footage, x Selling Price ($000s), y

2209 380.7

3323 396

1105 186.3

1953 334.5

3225 639.7

2741 365.7

3987 608

2147 367

2536 413.6

1632 286.2

1749 265.3

3882   700.2

r= ?

Solutions

Expert Solution

Solution:
Correlation coefficient can be calculated as
n*Summation(XY) - Summation(X)*Summation(Y)/sqrt(n*summation(X^2)-(Summation(X))^2)(n*Summation(Y)^2 - (Summation(Y))^2)) =

X

Y

X^2

Y^2

XY

2209

380.7

4879681

144932.49

840966.3

3323

396

11042329

156816

1315908

1105

186.3

1221025

34707.69

205861.5

1953

334.5

3814209

111890.25

653278.5

3225

639.7

10400625

409216.09

2063032.5

2741

365.7

7513081

133736.49

1002383.7

3987

608

15896169

369664

2424096

2147

367

4609609

134689

787949

2536

413.6

6431296

171064.96

1048889.6

1632

286.2

2663424

81910.44

467078.4

1749

265.3

3059001

70384.09

464009.7

3882

700.2

15069924

490280.04

2718176.4

30489

4943.2

86600373

2309291.54

13991629.6


Correlation = (12*13991629.6) - (30489*4943.2) / sqrt((12*86600373 - 30489*30489)(12*2309291.54 - 4943.2*4943.2)) =

17186330.4/sqrt(109625355*3276272.24) = 0.9069

orchestra answered 2 years ago
Next > < Previous

Related Solutions

(House Selling Price) The data below show the selling price, square footage, bedrooms, and age of...
(House Selling Price) The data below show the selling price, square footage, bedrooms, and age of houses that have sold in a neighborhood in the last six months. Selling price Square footage Bedrooms Age 64,000 1,670 2 30 59,000 1,339 2 25 61,500 1,712 3 30 79,000 1,840 3 40 87,500 2,300 3 18 92,500 2,234 3 30 95,000 2,311 3 19 113,000 2,377 3 7 115,000 2,736 4 10 138,000 2,500 3 1 142,500 2,500 4 3 144,000 2,479...
Use a scatterplot and the linear correlation coefficient r to determine whether there is a correlation...
Use a scatterplot and the linear correlation coefficient r to determine whether there is a correlation between the two variables. Use alphaequals0.05. x 6 1 4 8 5 y 5 0 2 7 4 Click here to view a table of critical values for the correlation coefficient. LOADING... Does the given scatterplot suggest that there is a linear​ correlation? A. Yes comma because the points appear to have a straight line pattern. B. ​Yes, because the data does not follow...
A linear correlation coefficient of 0.92 suggests a ________________ linear relationship than a linear correlation coefficient...
A linear correlation coefficient of 0.92 suggests a ________________ linear relationship than a linear correlation coefficient of -0.86. The value of the ___________________ always lies between -1 and 1, inclusive. If the linear correlation coefficient of the regression line is negative, then the ____________________ of the least squares (linear) regression line must be negative. Give a detailed interpretation of the slope of a least squares (linear) regression line. Give a detailed interpretation of the intercept of a least squares (linear)...
A Realtor is interested in modeling the selling price of houses based on the square footage...
A Realtor is interested in modeling the selling price of houses based on the square footage (X1), the age of the house (X2) and the number of bedrooms (X3). The data (below) was collected in the two largest cities in Arkansas and is given in an excel file. Follow the Minitab instructions on blackboard to answer the questions below. 1. Check the model assumptions a. Does the plot of Residuals vs. Fitted Values indicate that the assumption of constant variance...
A Realtor is interested in modeling the selling price of houses based on the square footage...
A Realtor is interested in modeling the selling price of houses based on the square footage and the age of the house. The data was collected in the two largest cities in Arkansas and is presented here.           Square footage X1                   Age in years X2   style           Selling price Y                    775                                37               Traditional 28,000                    700                                49               Traditional 34,000                    720                                54               Traditional 34,500                    864                                37               Rambler      39,900                    650                                35               Traditional 40,000                    780                                79               Victorian    41,500...
The data is the square footage and selling price of single-family homes for the month of...
The data is the square footage and selling price of single-family homes for the month of February and the first week of March. Square Footage Selling Price 1746 129320 1764 97000 676 35000 2788 400000 1944 68000 1960 117000 1056 148400 1564 35000 1100 165000 1120 114480 4080 175000 1442 65000 1937 60000 1900 18000 1150 258000 1650 134800 1953 30000 2424 69100 512 63000 1540 82500 1200 50000 1316 37500 1840 69000 3500 270000 5000 485000 1564 27000 1018...
The following data gives the selling price, square footage, number of bedrooms, and the age of...
The following data gives the selling price, square footage, number of bedrooms, and the age of a house in years. These houses have been sold in a specific neighborhood over the last six months. Selling Price ($) Square Footage Bedrooms Age (years) 84,000 1,670 2 30 79,000 1,339 2 25 91,500 1,712 3 30 120,000 1,840 3 40 127,500 2,300 3 18 132,500 2,234 3 30 145,000 2,311 3 19 164,000 2,377 3 7 155,000 2,736 4 10 168,000 2,500...
The following data give the selling price and square footage of houses that have sold in...
The following data give the selling price and square footage of houses that have sold in Bend, OR in the past 6 months. Selling Price ($) Square Footage 84,000 1,670 79,000 1,339 91,500 1,712 120,000 1,840 127,500 2,300 132,500 2,234 145,000 2,311 164,000 2,377 155,000 2,736 168,000 2,500 172,500 2,500 174,000 2,479 175,000 2,400 177,500 3,124 184,000 2,500 195,500 4,062 195,000 2,854 Graph the data to see whether a linear equation might describe the relationship between selling price and the...
What is the formula for the linear correlation coefficient? Write it again with the x and...
What is the formula for the linear correlation coefficient? Write it again with the x and y switch. What does this tell us about the formula? Give an example of a 2 way Anova problem presented in chart form. Explain the chart.
Determine and interpret the linear correlation coefficient, and use linear regression to find a best fit...
Determine and interpret the linear correlation coefficient, and use linear regression to find a best fit line for a scatter plot of the data and make predictions. Scenario According to the U.S. Geological Survey (USGS), the probability of a magnitude 6.7 or greater earthquake in the Greater Bay Area is 63%, about 2 out of 3, in the next 30 years. In April 2008, scientists and engineers released a new earthquake forecast for the State of California called the Uniform...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT