House prices. How does the price of a house depend on its size? Data from Saratoga, New York, on 1064 randomly selected houses that had been sold include data on price

($1000’s) and size (1000’s ft2), producing the following graphs and computer output:

a) Explain in words and numbers what the regression says.

b) The intercept is negative. Discuss its value, taking note of its P-value.

c) The output reports Explain what that means in this context.

d) What’s the value of the standard error of the slope of the regression line?

e) Explain what that means in this context.

Transcribed Image Text:

800 Price ($1000's) 400 400 00 600 200 1.25 2.50 3.75 5.00 Size (1000 ft)