Answer to Question #232919 in Statistics and Probability for eliakim ndume

Question

Suppose that you are assigned a task to investigate the relationship between selling price and valuation of plots sold by a local municipality. Data was obtained for a random sample of ten plots. 

Plot Selling price ($ 000) Valuation ($ 000)

1 120 72

2 100 68

3 140 72

4 150 70

5 155 75

6 100 50

7 150 58

8 200 90

9 80 56

10 145 70

A). Discuss the difference between correlation analysis and regression analysis.

B). Use the method of least squares and estimate the regression equation between selling price and valuation. 

C). Provide an interpretation for the slope coefficient. 

D). Use the estimated regression equation and make a prediction for a value of the dependent variable when the independent variable is N$ 85 000.

E). Calculate and interpret the coefficient of determination.

F). Calculate and interpret the correlation coefficient.