Correlation, regression and the simple linear model. Question: let use assume that you are going to purchase a house you know that the more floor space you have more the house is going to cost. You decide to collect some data. Square/feet: 1400 1900 1900 2100 2250 1450 2300 3100. Price in /kilo dollar 200 245 260 300 310 190 400 525. We can say the data has a positive correlation but what does that mean? What would you expect to pay for a 1600 square foot house