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
tion regression line, is not zero, which would mean that
use as a predictor of y (Sales Price)? Use a 5% level of significance.
x Area (square feet)
y Sales Price ( $1000)
Procedure
1 m STAT2
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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
and conclude that there is a linear relationship
17
examples
, that is, the slope of the popula-
1
y
x
=
+
+
0
1
x
(Area) can be
x
between area(
) and price(
1
y
).