A v DAY Heading 3 Normal No Spacing Heading 1 Heading 2 Styles Dictate Pane A realtor wants to examine the relationship between the assessed value of a property (land and buildings) and the size of any house located on the property (measured in square feet). Below is a random sample of the 2022 assessed values for properties in a 5-year old Coquitlam subdivision: Square Footage Assessed Value Square Footage Assessed Value (in 100's) (in $1,000's) (in 100's) (in $1,000's) 16.4 1379.2 24.8 1541.4 18.5 1418.0 1569.0 NN 19.2 1435.6 1529.0 1439.0 1517.0 21.6 1407.8 29.4 1627.2 22.8 1448.4 30.5 1641.0 1433.0 1585.0 23.5 1475.9 Linear regression output to predict assessed value (in $1,000's) based on house size (in 100's): SUMMARY OUTPUT Regression Statistics Multiple R 0.92564 R Square 0.8568 Observations Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 1089 46.95 23.19 0.00000000 987.57 1190.43 Square Footage 16.85 1.9104 8.82 0.00000076 12.72 20.98 (a) What is the meaning of the slope? Interpret it using the words of the problem. (3 marks)AV Pane Square Footage 16.85 1.9104 8.82 0.00000076 |12.72 20.98 (c) Write down the estimated regression line y = bo + bjx to predict the assessed value based on the square footage of the house. (1 mark) ANSWER (d) Predict the assessed value for a 2,400 square foot house in the subdivision. (2 marks) ANSWER: (e) Assessed values are used to calculate property taxes. A 2,400 square foot home in the subdivision is assessed at $1,700,000. The homeowner filed an appeal to have their assessment reduced. Are they justified in thinking the assessed value is too high? Explain. (2) (f) Interpret r2 (the coefficient of determination) using the words of the problem. (2 marks)(b) What is the meaning of the intercept? Interpret it using the words of the problem. (2 marks) OPMT 1197 Quiz 21 Mark: /12 SUMMARY OUTPUT Regression Statistics Multiple R 0.92564 R Square 0.8568 Adjusted R Square 0.8458 Standard Error 32.537 Observations 15 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 1089 46.95 23.19 0.00000000 987.57 1190.43 Square Footage 16.85 1.9104 8.82 0.00000076 12.72 20.98 (c) Write down the estimated regression line y = bo + bj x to predict the assessed value based on the square footage of the house. (1 mark) ANSWER (d) Predict the assessed value for a 2,400 square foot house in the subdivision. (2 marks)