Math Problem Statement
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:
where is the dependent variable (price), is the independent variable (size), is the slope, and is the y-intercept.
Here's a step-by-step approach using the given data:
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Calculate the Means:
- Mean of (size):
- Mean of (price):
-
Calculate the Slope :
-
Calculate the Intercept :
Let's plug in the values:
-
Means:
- Mean of :
- Mean of :
-
Slope :
After calculation:
-
Intercept :
Thus, the linear regression equation is approximately:
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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