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The data in the table below are the results of a random sample of recent home sales in your neighborhood that your boss has asked you to use to estimate the relationship between the selling price of the house and the number of square feet in it.
Observation Number
Sale Price (in thousands)
Square Feet (in hundreds)
1
280
20.3
2
328
30.0
3
281
21.5
4
293
25.4
5
263
14.5
6
291
22.3
7
320
31.0
8
256
37.2
9
311
27.1
10
352
30.2
11
288
21.2
12
356
13
23.0
14
272
26.7
15
308
26.5
b. What is the estimated regression line? What does the coefficient of square feet represent?
c. Is the sample size large enough for the estimated coefficient of square feet to be statistically significant at the 5% level?
d. What is the coefficient of determination (R2)?
e. Perform an F-test, again at the 5% level.
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