Question
Samrt Money magazine evaluated 65 metropolitan areas to determine where the homesales are headed. An ideal city would get a score of 100 if all
Samrt Money magazine evaluated 65 metropolitan areas to determine where the homesales are headed. An ideal city would get a score of 100 if all factors measured were as favorable as possible. Areas with a score of 60 or greater are considered to be prime for appreciation, and areas with a score of below 50 may see housing values erode. Two fo the factors evaluated were the recession resistance of the area and its affordability. Both of these factors were rated using a scale ranging from 0 (low score) to 10 (high score). The data is shown for a sample of 20 cities a. Develop a regression equation that can be used to predict the score given the recession rating. At 0.05 level of significance, test for a significant relationship. b. Did the estimated regression equation developed above provide a good fit for the data? Explain. c. Develop a regression equation that can be used to predict the score given the recession ratingand the affordability rating. At 0.05 level of significance, test for overall significance.
Metro Area | RecRes | Afford | Score |
Tuscon | 10 | 7 | 70.7 |
Fort Worth | 10 | 7 | 68.5 |
San Antonio | 6 | 8 | 65.5 |
Richmond | 8 | 6 | 63.6 |
Indianapolis | 4 | 8 | 62.5 |
Philadelphia | 0 | 10 | 61.9 |
Atlanta | 2 | 6 | 60.7 |
Phoenix | 4 | 5 | 60.3 |
Cincinnati | 2 | 7 | 57 |
Miami | 6 | 5 | 56.5 |
Hartford | 0 | 7 | 56.2 |
Birmingham | 0 | 8 | 55.7 |
San Diego | 8 | 2 | 54.6 |
Raleigh | 2 | 7 | 50.9 |
Oklahoma City | 1 | 6 | 49.6 |
Orange County | 4 | 2 | 49.1 |
Denver | 4 | 4 | 48.6 |
Los Angeles | 0 | 7 | 45.7 |
Detroit | 0 | 5 | 44.3 |
New Orleans | 0 | 5 | 41.2 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started