In: Statistics and Probability
Perform a linear regression on this data set
Assessed Value | Heating Area | Age |
184400 | 2000 | 3.42 |
177400 | 1710 | 11.50 |
175700 | 1450 | 8.33 |
185900 | 1760 | 0.00 |
179100 | 1930 | 7.42 |
170400 | 1200 | 32.00 |
175800 | 1550 | 16.00 |
185900 | 1930 | 2.00 |
178500 | 1590 | 1.75 |
179200 | 1500 | 2.75 |
186700 | 1900 | 0.00 |
179300 | 1390 | 0.00 |
174500 | 1540 | 12.58 |
183800 | 1890 | 2.75 |
176800 | 1590 | 7.17 |
Be sure to plot the data and plot and include various graphs that would help determine if the data is normally distributed (which is an assumption of ordinary least squared regression).
At the 0.05 significance level is there evidence of a relation between assessed value and heated area of house?
Solution:
We have to test weather there is a relation between assessed value and heated area of house