Reference no: EM13828711

A planning official in the Texas Department of Community Affairs, which works in the office next to you, has a problem. He has been handed a data set from his boss that includes the costs involved in developing local land use plans for communities with populations between 75,000 and 125,000. The boss has a hunch that the plans are more expensive as population increases. He has no idea how to decide and asks for your assistance. Given the data in the following table, using regression analysis, are the plans more expensive (I mean statistically significantly different) as population increase?  You must use SPSS for this question.

Community    Population      Cost       

1                    77000          12500

2                    87000          13700

3                    76000          12000

4                  124000          23000

5                  100000          21000

6                  110000         19000

7                  115000         22000

8                    98000         18000

9                    87000         13500

10                 123000         27000

11                   95000         17000

12                 121000         21000

13                 113000         22000

14                 105000         19000

15                 102000         17000

16                 104000         23000

17                   75000         14000

18                   85000         14000     

From the above given data, using your linear regression, predict the cost of the city plan for a community with a population of 250,000. Explain and discuss your model in detail. For example how well does it explain the variation in plan cost? Do the model's residuals behave appropriately? In short discuss the pluses and minuses regarding your model.

Additional Information
This question based on the Statistics and it is about calculating communities that have been allotted land and the cost of such allocation with population of the community as a parameter. A regression analysis needs to be done, which has been given in detailed in the solution.

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