Answer:
The best predicted selling price of a home having a list price of $22 million is $20.52 million.
Step-by-step explanation:
The missing data is:
List price (x) (millions of $)
(1) 1.6 (2) 4.2 (3) 2.1 (4) 1.6 (5) 2.3 (6) 4
Selling price (y) (millions of $)
(1) 2 (2) 4.6 (3) 1.8 (4) 1.9 (5) 2.4 (6) 3.6
Use Excel to perform the regression analysis.
The significance level is, α = 0.05.
The regression output is attached below.
The regression equation is:
[tex]\hat y=0.28+0.92x[/tex]
The value of t-statistic is:
t = 0.676.
The p-value is:
p-value = 0.536
Compute the predicted selling price of a home having a list price of $22 million as follows:
[tex]\hat y=0.28+0.92x[/tex]
[tex]=0.28+0.92\times 22\\\\=0.28+20.24\\\\=20.52\ \text{million}[/tex]
Thus, the best predicted selling price of a home having a list price of $22 million is $20.52 million.
