19) Foragivendataset,theequationoftheleastsquaresregressionlinewillalwayspassthrough
A) (x,y). B) everypointinthegivendataset.
C) atleasttwopointinthegivendataset. D) they–interceptandtheslope.
2 Interprettheslopeandthey–interceptoftheleast–squaresregressionline.
MULTIPLECHOICE.Choosetheonealternativethatbestcompletesthestatementoranswersthequestion.
Provideanappropriateresponse.
1) Acountyrealestateappraiserwantstodevelopastatisticalmodeltopredicttheappraisedvalueofhousesina
sectionofthecountycalledEastMeadow.Oneofthemanyvariablesthoughttobeanimportantpredictorof
appraisedvalueisthenumberofroomsinthehouse.Consequently,theappraiserdecidedtofitthesimple
linearregressionmodel,y
^=β0+β1x,wherey=appraisedvalueofthehouse(in$thousands)andx=number
ofrooms.Usingdatacollectedforasampleofn=74housesinEastMeadow,thefollowingresultswere
obtained:
y
^=74.80+20.86x
sβ=71.24,t=1.05(fortestingβ0)
sβ=2.63,t=7.49(fortestingβ1)
SSE=60,775,MSE=841,s=29,r2=.44
Rangeofthex–values:5–11
Rangeofthey–values:160–300
Giveapracticalinterpretationoftheestimateoftheslopeoftheleastsquaresline.
A) Foreachadditionalroominthehouse,weestimatetheappraisedvaluetoincrease$20
860.
B) Foreachadditionalroominthehouse,weestimatetheappraisedvaluetoincrease$74,800.
C) Foreachadditionaldollarofappraisedvalue,weestimatethenumberofroomsinthehousetoincrease
by20.86rooms.
D) Forahousewith0rooms,weestimatetheappraisedvaluetobe$74,800.
2) Acountyrealestateappraiserwantstodevelopastatisticalmodeltopredicttheappraisedvalueofhousesina
sectionofthecountycalledEastMeadow.Oneofthemanyvariablesthoughttobeanimportantpredictorof
appraisedvalueisthenumberofroomsinthehouse.Consequently,theappraiserdecidedtofitthesimple
linearregressionmodel,y
^=β0+β1x,wherey=appraisedvalueofthehouse(in$thousands)andx=number
ofrooms.Usingdatacollectedforasampleofn=74housesinEastMeadow,thefollowingresultswere
obtained:
y
^=74.80+19.72x
sβ=71.24,t=1.05(fortestingβ0)
sβ=2.63,t=7.49(fortestingβ1)
SSE=60,775,MSE=841,s=29,r2=0.44
Rangeofthex–values:5–11
Rangeofthey–values:160–300
Giveapracticalinterpretationoftheestimateofthey–interceptoftheleastsquaresline.
A) Thereisnopracticalinterpretation,sinceahousewith0roomsisnonsensical.
B) Foreachadditionalroominthehouse,weestimatetheappraisedvaluetoincrease$74,800.
C) Foreachadditionalroominthehouse,weestimatetheappraisedvaluetoincrease$19,720.
D) Weestimatethebaseappraisedvalueforanyhousetobe$74,800.
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