Question

a random sample of records of home sales from feb. 15 to apr. 30, 1993, from the files maintained by the albuquerque board of realtors gives the price (in thousands of dollars) and size (in square feet) of 117 homes. a regression to predict price (in thousands of dollars) from size has an r - 2 of 71.4%. the residuals plot indicated that a linear model is appropriate. complete part b. b) what units does the slope have? a. the slope has units of dollars per square foot. b. the slope has units of thousands of dollars per square foot. c. the slope has units of dollar amount. d. the slope has units of square feet per thousands of dollars.

Explanation:

Step1: Recall slope - formula concept

The slope of a regression line in a simple - linear regression model $y = mx + b$ (where $y$ is the dependent variable, $x$ is the independent variable, $m$ is the slope, and $b$ is the intercept) has units that are the units of $y$ per unit of $x$.

Step2: Identify variables and their units

Here, the dependent variable $y$ is Price (in thousands of dollars) and the independent variable $x$ is Size (in square feet).

Step3: Determine slope units

The units of the slope $m$ will be the units of $y$ (thousands of dollars) per unit of $x$ (square feet), which means thousands of dollars per square foot.

Answer:

C. The slope has units of thousands of dollars per square foot.