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One of the biggest factors in determining the value of a home is the square footage. The accompanying data represent…

One of the biggest factors in determining the value of a home is the square footage. The accompanying data represent the square footage and asking prices (in thousand of dollars) for a random sample of home for sales.

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Square Footage, x                                        Asking Prince ($000s), y

1,148                                                                                     154

1,096                                                                             159.9

1,151                                                                              169

1,288                                                                             169.9

1,322                                                                             170

1,466                                                                              179.9

1344                                                                              180

1,544                                                                             189

1,494                                                                              189.9

a. Which variable is the explanatory variable?

b. Draw a scatter diagram of the data.

c. Determine the liner correlation coefficient between square footage and asking price.

d. find the least-square regression treating square footage as the explanatory variable.

e. Interpret the slope.

 

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