Regression model, Applied Statistics

Assignment Help:

A real estate agency collected the data shown below, where

          y  = sales price of a house (in thousands of dollars)

          x1 = home size (in hundreds of square feet)

          x2 = rating (an overall rating for the house expressed on a scale from   1 (worst) to 10 (best).

 

                             Sales Price (y)    Home Size (x1)        Rating (x2)    

                                    180.0                     23                           5

                                      98.1                      11                           2

                                    173.1                     20                           9

                                    136.5                     17                           3

                                    141.0                     15                           8

                                    165.9                     21                           4

                                    193.5                     24                           7

                                    127.8                     13                           6

                                    163.5                     19                           7

                                    172.5                     25                           2              

 

     The agency developed the following regression model:

                 y = βo + β1 x1 + β2 x2+ €

     a) Show why this may be a reasonable model for the relationship between the sales price and home size? 

     b) What factors are represented in the error term in this model?  Give a specific example of these factors.


Related Discussions:- Regression model

Plot diagnostic quantities, The data in the data frame compensation are fro...

The data in the data frame compensation are from Myers (1990), Classical andModern Regression with Applications (Second Edition)," Duxbury. The response y here is executive compens

What are the coefficients of the linear combination, For the following ques...

For the following questions we are interested in a comparison of the 16 years education vs. > 16 years. (Recall we did the analysis on the log scale, so these are actual means on t

Correlation analysis, Correlation Analysis Correlation Analysis is perf...

Correlation Analysis Correlation Analysis is performed to measure the degree of association between two variables. The measure is called coefficient of correlation. The coeffic

Types of business forecasting , Types  of business forecasting  are genera...

Types  of business forecasting  are generally as follows: 1.      Sales  and Demand  forecasts 2.      Porduction  forecasts. 3.       Cost  Forecasts 4.       Financi

Disadvantages of median, Disadvantages For calculating median it is ...

Disadvantages For calculating median it is necessary to arrange the data; other averages do not need any arrangement. Since it is a positional average, its value is not d

Cluster sampling, Cluster Sampling This method is also known as multi s...

Cluster Sampling This method is also known as multi stage sampling .Under this method random selection is made of the ultimate or final units from a given stratum. The sampling

Utility index , If the economy does well, the investor's wealth is 2 and if...

If the economy does well, the investor's wealth is 2 and if the economy does poorly the investor's wealth is 1. Both outcomes are equally likely. The investor is offered to invest

Probability and expectation, Ten balls are put in 6 slots at random.Then ex...

Ten balls are put in 6 slots at random.Then expected total number of balls in the two extreme slots

Regression analysis , The data used is from a statistical software Minitab;...

The data used is from a statistical software Minitab; London.MPJ is the file that consists of 1519 households drawn from 1980 - 1982 British Family Expenditure Surveys. Data that i

Write Your Message!

Captcha
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