User manual - Examples 1

examples

Example A survey conducted by a city on its real estate investments revealed

the following data on the relationship between area and price.

Does the data indicate that the value

1, that is, the slope of the popula-

tion regression line, is not zero, which would mean that x (Area) can be

use as a predictor of y (Sales Price)? Use a 5% level of significance.

Procedure

1 m STAT2

2jwbfwbawbbwbaw

dgwiaweewffwdfw

3 3(TEST) c(T)d(LinReg)

4 1(≠) c

1(LIST) bwc

1(LIST) cwc

1(1)c

1(None) c

5 1(CALC)

Result Screen

Since P = 6.4531e-3 < 0.05 (level of significance), we can reject the null hypothesis

1 ≠ 0

and conclude that there is a linear relationship y =

0 +

1x + ε between area(x) and price(y).

x Area (square feet) 9 15101110

y Sales Price (× $1000) 36 80 44 55 35