Q.4.158 - Elementary Statistics

Question

Home Size and Value. The data from Exercise 4.74 for home size (in square feet) and assessed value (in thousands of dollars) for the same homes as in Exercise 4.157 are on the WeissStats site.

a. decide whether use of the linear correlation coefficient as a descriptive measure for the data is appropriate. If so, then also do parts (b) and (c).

b. obtain the linear correlation coefficient.

c. interpret the value of $r$ in terms of the linear relationship between the mo variables in question.

Step-by-Step Solution

Answer

a). We utilized the linear correlation coefficient as a data descriptive metric.

b). The linear correlation coefficient is $0.688$.

c). The positive linear correlation coefficient indicates a fairly favorable relationship between home size and value.

Part (a) Step 1: Given Information

The table below shows the lot size and assessed value for a sample of residences in a certain location.

Part (a) Step 2: Explanation

Draw a scatter plot showing the relationship between lot size and assessed value for a sample of properties in a certain location.

According to the scatter plot, the data points are distributed linearly.

As a consequence, as a data descriptive metric, we picked the linear correlation coefficient.

Part (b) Step 1: Given Information

The table below shows the lot size and assessed value for a sample of residences in a certain location.

Part (b) Step 2: Explanation

Any technique may be used to find the correlation coefficient.

We'll begin by inputting the brides and their scores, followed by the ultimate outcome.

Hence,

The linear correlation coefficient $=0.688$

Part (c) Step 1: Given Information

The table below shows the lot size and assessed value for a sample of residences in a certain location.

Part (c) Step 2: Explanation

The linear correlation co-efficient $r=0.688$

The positive linear correlation coefficient indicates a fairly favorable relationship between home size and value.