An auditor for a county government would like to develop a model to predict county taxes, based
Question:
An auditor for a county government would like to develop a model to predict county taxes, based on the age of single-family houses. She selects a random sample of 19 single-family houses, and the results are stored in Taxes.
1. Construct a scatter plot of age and county taxes.
2. Fit a quadratic regression model and state the quadratic regression equation.
3. Predict the county taxes for a house that is 20 years old.
4. Perform a residual analysis on the results and determine whether the regression model is valid.
5. At the 0.05 level of significance, is there a significant overall relationship between age and county taxes?
6. What is the p-value in (e)? Interpret its meaning.
7. At the 0.05 level of significance, determine whether the quadratic model is superior to the linear model.
8. What is the p-value in (g)? Interpret its meaning.
9. Interpret the meaning of the coefficient of multiple determination.
10. Calculate the adjusted r2.
Step by Step Answer:
Basic Business Statistics Concepts And Applications
ISBN: 9780132168380
12th Edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel