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A sample of 12 homes sold last week in St. Paul, Minnesota is selected. Can we conclude that as the size of the home (reported below in thousands of square feet) increases, the selling price (reported in $ thousands) also increases?
Home Size (thousands of Square feet)
Selling Price ($ thousands)
1.4
100
1.3
110
0.8
85
1.2
105
1.1
120
0.9
75
80
70
1.0
95
A. Compute the coefficient of correlation.
B. Determine the coefficient of determination.
C. Can we conclude that there is a positive association between the size of the home and the selling price? Use the .05 significance level.
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