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Real estate redux The regression of Price on Size of homes

Chapter 6, Problem 37E

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QUESTION:

Real estate redux The regression of Price on Size of homes in Albuquerque had \(R^{2} = 71.4 \%\), as described in Exercise 29.

a) What is the correlation between Size and Price?

b) What would you predict about the Price of a home 1 SD above average in Size?

c) What would you predict about the Price of a home 2 SDs below average in Size?

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QUESTION:

Real estate redux The regression of Price on Size of homes in Albuquerque had \(R^{2} = 71.4 \%\), as described in Exercise 29.

a) What is the correlation between Size and Price?

b) What would you predict about the Price of a home 1 SD above average in Size?

c) What would you predict about the Price of a home 2 SDs below average in Size?

ANSWER:

Step 1 of 4

Given:

 

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