Math Problem Statement

What is the linear regression equation for the data above?

What is the linear regression equation for the data above?

Solution

To find the linear regression equation, you need to determine the relationship between the size of the house (in square feet) and the price of the house (in thousands of dollars). The equation of a line is given by:

y=mx+cy = mx + c

where yy is the dependent variable (price), xx is the independent variable (size), mm is the slope, and cc is the y-intercept.

Here's a step-by-step approach using the given data:

  1. Calculate the Means:

    • Mean of xx (size): (1200+1339+1382+2351+2369+3600)/6(1200 + 1339 + 1382 + 2351 + 2369 + 3600) / 6
    • Mean of yy (price): (320+430+389+635+689+750)/6(320 + 430 + 389 + 635 + 689 + 750) / 6
  2. Calculate the Slope mm: m=(xixˉ)(yiyˉ)(xixˉ)2m = \frac{\sum{(x_i - \bar{x})(y_i - \bar{y})}}{\sum{(x_i - \bar{x})^2}}

  3. Calculate the Intercept cc: c=yˉmxˉc = \bar{y} - m\bar{x}

Let's plug in the values:

  1. Means:

    • Mean of xx: xˉ=2040.17\bar{x} = 2040.17
    • Mean of yy: yˉ=535.5\bar{y} = 535.5
  2. Slope mm: m=(12002040.17)(320535.5)+(13392040.17)(430535.5)++(36002040.17)(750535.5)(12002040.17)2+(13392040.17)2++(36002040.17)2m = \frac{(1200-2040.17)(320-535.5) + (1339-2040.17)(430-535.5) + \ldots + (3600-2040.17)(750-535.5)}{(1200-2040.17)^2 + (1339-2040.17)^2 + \ldots + (3600-2040.17)^2}

    After calculation:

    m0.216m \approx 0.216

  3. Intercept cc: c=535.50.216×2040.1794.92c = 535.5 - 0.216 \times 2040.17 \approx 94.92

Thus, the linear regression equation is approximately:

y=0.216x+94.92y = 0.216x + 94.92

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Math Problem Analysis

Mathematical Concepts

Linear Regression
Statistics
Algebra

Formulas

y = mx + c
m = Σ(x_i - x̄)(y_i - ȳ) / Σ(x_i - x̄)^2
c = ȳ - m * x̄

Theorems

Least Squares Regression

Suitable Grade Level

Grades 10-12