Q. 4.73 - Elementary Statistics

Question

Acreage and Value. The document Arizona Residential Property Valuation System, published by the Arizona Department of Revenue, describes how county assessors use computerized systems to value single-family residential properties for property tax purposes. On the Weiss Stats site are data on lot size (in acres) and assessed value (in thousands of dollars) for a sample of homes in a particular area.

a. Obtain a scatterplot for the data.

b. Decide whether finding a regression line for the data is reasonable. If so, then also do parts (c) - f).

Step-by-Step Solution

Answer

a. The scatter plot is,

b. Finding the regression line for the provided data is not feasible.

Part (a) Step 1: Given Information

The Arizona Department of Revenue's document Arizona Residential Property Valuation System

explains how county assessors use computerized systems to evaluate single-family residential homes for property tax purposes. 

Data on lot size (in acres) and assessed value (in thousands of dollars) for a sample of dwellings in

a given location can be found on the Weiss Stats website.

Determine the scatter plot for the given data.

Part (a) Step 2: Explanation

The MINITAB: can be used to create a scatterplot for the given data.

Step 1: Select Graph > Scatterplot from the drop-down menu.

Step 2: Click OK after selecting With Connect Line.

Step 3: Add a VALUE column to the Y variables section.

Step 4: Add a LOT SIZE column to the X variables section.

Step 5: Click the OK button.

The scatterplot obtained will be,

Part (b) Step 1: Given Information

Determine whether or not it is reasonable to seek out the regression line.

Part (b) Step 2: Explanation

Finding a regression line for the supplied data is not feasible because the points do not form a linear pattern. 

Furthermore, the data contains several significant observations and outliers. 

As a result, the

presented data does not form a linear pattern, making the regression line impossible to detect.