Question
A councellor in a new residential area of outer Western Sydney, is reviewing apartment floor areas and sale prices to determine if he could estimate
A councellor in a new residential area of outer Western Sydney, is reviewing apartment floor areas and sale prices to determine if he could estimate the sale price from the apartment floor area. The following data was collected for a sample of 10 recent sales of apartments.
Area (m2) | 460 | 500 | 540 | 540 | 580 | 610 | 620 | 680 | 730 | 790 |
Price ($'000s) | 230 | 236 | 242 | 246 | 200 | 250 | 256 | 262 | 250 | 274 |
You may use the following Excel print-out to answer the questions.
Regression Statistics | Descriptive Statistics | ||||
Multiple R | 0.630 | n = | 10 | ||
R Square | 0.397 | 605 | |||
Adjusted R Square | 0.322 | 244.6 | |||
Standard Error | 16.566 | 10761.111 | |||
Observations | 10 | 404.489 | |||
1314.444 | |||||
Coeff | Stand Error | t Stat | P-value | ||
Intercept | 170.701 | 32.628 | 5.232 | 0.001 | |
Area (m) | 0.122 | 0.053 | 2.295 | 0.051 |
i) What is the equation of the regression line to predict Sale Price from floor area?
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