Do what you can
Chapter 10: Round all numbers to two digits after the decimal point. (30pts.) The data given in the Excel file - Chapter 10 is obtained from Zillow and includes the median sales price and the median price for to rent a home in 40 cities, as of July 2018, taken from https://www.zillow.com/research/local-market- reports/ . Use these data to create a scatter plot showing the relationship between the two variables: Median Sales price (x) and Median Rent for Housing (y) 1. Write up an analysis of all the information that you learn from the graph a) State the correlation coefficient. Is there a significant correlation between the variable sales price and rent price? (Why? Compare r with the critical r value. b) If there appear to be a correlation, describe the correlation (direction, strength). c) What percentage of the variation in rent City can be explained by the linear relation to the Median Sale Price , Median Rent New York 429700 sales price of housing? Los Angeles 2372 643300 2752 2. Answer all of the following questions. Chicago 219800 1636 Dallas 231100 a) Based on your analysis in step 2, do you 1595 Houston 199300 1548 think it is possible to infer a median rent Philadelphia 228400 1566 price from median sales price? Explain your Washington 397500 2132 answer . Miami 275700 1857 Atlanta b) What is the regression equation? 206300 1394 Boston 456400 2365 c) Suppose you predict that the median rent San Francisco 954100 3399 price is $1500 inches, and you latter find out Phoenix 256000 1362 that it is actually only $1200. Give one Riverside 358600 1898 Detroit 156100 1194 possible reason that your prediction was Seattle 487600 2173 incorrect. Minneapolis 26130 1638 e) Using the relationships that you San Diego 584100 2540 calculated, determine the approximate Tampa 205900 1390 St. Louis 161800 1139 median rent price with Baltimore 264700 1740 - sales prices: $270500 - sales Denver 397800 2054 prices: $390000 Charlotte 196800 1293 Pittsburgh 141600 4. Using the relationship between the median 1083 Portland 391800 1834 sales and median rent price answer the San Antonio 185900 1332 following questions: Orlando 228700 1448 a) What is the slope of the regression Sacramento 400800 1842 Cincinnati 162000 1276 equation? What does the slope of the Las Vegas 266200 1305 regression equation represent in this Kansas City 182600 1264 problem? Cleveland 141500 1140 b) What is the y-intercept? What does the y- Columbus 18260 1335 Indianapolis 154100 1195 intercept represent in this problem? Is it San Jose 1292600 3499 meaningful? Austin 298000 1681 Nashville 246500 1490 Virginia Beach 226800 1409 Providence 286000 1668 Milwaukee 223200 1318 Jacksonville 202100 1339 17
