Math Problem Statement

Use your regression equation to predict the cost of a house that is 4000 square feet.

Is your answer from the previous question reasonable?

Use your regression equation to predict the cost of a house that is 4000 square feet. Is your answer from the previous question reasonable?

Solution

Let's perform linear regression using the given data to predict the cost of a 4000 square foot house.

Data:

  • Size (sq. ft.) = [1200, 1339, 1382, 2351, 2369, 3600]
  • Price (in $1000) = [320, 430, 389, 635, 689, 750]

Step 1: Calculate the slope (m) and intercept (b) for the regression line equation y=mx+by = mx + b.

  1. Calculate the mean of the size and price:
    • Mean size = 1200+1339+1382+2351+2369+36006\frac{1200 + 1339 + 1382 + 2351 + 2369 + 3600}{6}
    • Mean price = ( \frac{320 + 430 + 389 + 635

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Math Problem Analysis

Mathematical Concepts

Linear Regression
Algebra
Statistics

Formulas

y = mx + b
Mean Calculation
Slope Formula: m = Σ((x - x̄)(y - ȳ)) / Σ((x - x̄)²)
Intercept Formula: b = ȳ - m * x̄

Theorems

Least Squares Regression Theorem

Suitable Grade Level

Grades 10-12