What is the value of the coefficient of determination

Assignment Help Finance Basics
Reference no: EM131138686

John Howard, a mobile, Alabama, real estate developer, has devised a regression model to help determine residential housing prices in South Alabama. The model was developed using recent sales in a particular neighborhood. The price (Y) of the house is based on the size (square footage=X) of the house. The model is:

Y= 13,473 +37.65x

The coefficient of correlation for the model is 0.63

a) Use the model to predict the selling price of a house that is 1,860 square feet

b) An 1.860 square foot house recently sold for $95,000. Explain why this is not what the model predicted?

c) If you were going to use multiple regressions to develop such a model, what other quantitative variables might you include?

d) What is the value of the coefficient of determination in this problem?

Reference no: EM131138686

Questions Cloud

Gdp in terms of total income received by households : The table and figure show GDP measured in terms of total income received by households. Use the table and figure to help determine which of the following statements about the division of income is false.
Which of the following is a ubiquitous application : Which of the following is a ubiquitous application, meaning it is able to function without a user's knowledge or control?
Calculate the mean and median : n July, Lee Realty sold 10 homes at the following prices: $140,000; $166,000; $80,000; $98,000; $185,000; $150,000; $108,000; $114,000; $142,000; and $250,000. Calculate the mean and median.
An e-business analysis of ebay : An e-Business Analysis of Ebay.
What is the value of the coefficient of determination : a) Use the model to predict the selling price of a house that is 1,860 square feet b) An 1.860 square foot house recently sold for $95,000. Explain why this is not what the model predicted? c) If you were going to use multiple regressions to develop ..
Discuss merton five modes of adaptation to strain : Discuss Merton's five modes of adaptation to strain. Explain why labeling theory is important. Discuss the difference between primary and secondary deviance and how they are related to the labeling theory
Factorial designs yield that nonfactorial designs : Factorial designs allow researchers to study the effects of more than one independent vaiable simultaneously. Why is this advantageous? What information can factorial designs yield that nonfactorial designs cannot?
Creator with certain unalienable rights : Jefferson wrote, “[We believe] that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness.” What drove Jefferson and the Second Continental ..
Calculate the lateral force on the wall : After a flood, the groundwater level, which is usually below the base of the wall, rose to the surface. Calculate the lateral force on the wall. Neglect seepage effects.

Reviews

Write a Review

Finance Basics Questions & Answers

  What do the following data taken from a comparative

what do the following data taken from a comparative balance sheet indicate about the companys ability to borrow

  Calculate the npv at three different discount rates

Calculate the NPV at three different discount rates. Which project would you recommend based on NPV? Calculate the Benefit-Cost Ratio for both Project A and Project B and compare.

  General phases of the working capital cycle

Question 1: What are four general phases of the working capital cycle? Question 2: What are the three primary sources of short-term funds?

  Writing a letter of advice to a senior finance manager

You are to select an organization and prepare an assignment on how risk management is practiced in that organization.

  Determine the annual financing cost

Determine the annual financing cost, before considering cost savings and bad-debt losses. Determine the annual financing cost, after considering cost savings and bad-debt losses.

  The yield-to-maturity on the debt is 936 percent what is

bakers footwear has 8000 shares of common stock outstanding at a price per share of 64 and a rate of return of 15

  Should the firm lease or borrow and buy the equipment

Assuming that the lease can be arranged, should the firm lease or borrow and buy the equipment? Explain. Consider the $200,000 estimated residual value. Is it appropriate to discount it at the same rate as the other cash flows? What about the other c..

  What is the cost of equity for green using the dividend

The expected risk-free rate of interest is 2%, and the expected market premium is 5.5%. The company's beta is 1.2.

  What is the duration of this bond

A bond currently sells for $1,050, which gives it a yield to maturity of 6%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,025. What is the duration of this bond?

  Different persuasive approaches

What different persuasive approaches would you use with the following audiences: a manager, a peer, a challenging person, and an open-minded person? Why would your approach differ with each?

  Computing interest rate on euro

Assume that one year offshore USD and EURO interest rates in London are 4.6%-5.00% and 3.00%-3.4% respectively. A German investor has access to the following spot rates:

  Compute each of the following ratios for starbucks

Compute the present value of operating lease obligations using a 6 percent discount rate for Starbucks at September 28, 2008. Compute each of the following ratios for Starbucks as of September 28, 2008, using the amounts as originally reported in its..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd