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Question: linear Regression
Let's say that we had data on the prices of homes on sale and the actual number of sales of homes:
Price(thousands of $)
Sales of new homes
Answer all the following questions:
1) Construct a scatter diagram with Price and Sales.
2) Is there any relationship between Price and Sales?
3) Compute the coefficient of correlation.
4) Comment on the value of the coefficient of correlation.
5) Use the regression equation to predict Price when the Sales are 65.
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