Table B.4 presents data for 27 houses sold in Erie,

Table B.4 presents data for 27 houses sold in Erie, Pennsylvania.

a. Fit a simple linear regression model relating selling price of the house to the current taxes ( x1 ).

b. Test for signifi cance of regression.

c. What percent of the total variability in selling price is explained by this model?

d. Find a 95% CI on β1 .

(a) Do part (a). Report your point estimates for all parameters of your model. Make a plot of the data and the fitted regression line.

(b) Do part (b) which asks you to run and interpret an F test.

(c) Part (c) asks you to interpret the sums-of-squares decomposition. Answer this question.

(d) Do part (d).
 

 

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