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In: Statistics and Probability

Problem 1 14.59 Is the number of square feet of living space a good predictor of...

Problem 1

14.59 Is the number of square feet of living space a good predictor of a house’s selling price? The following data show the square footage and selling price for fifteen houses in Winston Salem, North Carolina (Zillow.com, April 5, 2015).

Size (1000s sq. ft)

Selling Price ($1000s)

1.26

117.5

3.02

299.9

1.99

139.0

0.91

45.6

1.87

129.9

2.63

274.9

2.60

259.9

2.27

177.0

2.30

175.0

2.08

189.9

1.12

95.0

1.38

82.1

1.80

169.0

1.57

96.5

1.45

114.9
  1. What is the coefficient of determination?
  2. What is the sample correlation coefficient?
  3. At 95% confidence level, construct a confidence interval for the mean value of the selling price of a 2000 square foot house in Winston Salem, North Carolina.
  4. At 99% confidence level, construct a prediction interval for the selling price of a 2500 square foot house in Winston Salem, North Carolina.

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Expert Solution

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orchestra answered 1 year ago
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