The following data on sale price, size, and land-to-building ratio for 10 large industrial properties appeared in a paper.
| Property | Sale Price (millions of dollars) |
Size (thousands of sq. ft.) |
Land-to- Building Ratio |
| 1 | 10.5 | 2167 | 2.1 |
| 2 | 2.7 | 752 | 3.5 |
| 3 | 30.4 | 2422 | 3.5 |
| 4 | 1.9 | 224 | 4.7 |
| 5 | 20.0 | 3918 | 1.6 |
| 6 | 8.1 | 2867 | 2.2 |
| 7 | 10.0 | 1698 | 3.1 |
| 8 | 6.7 | 1047 | 4.8 |
| 9 | 5.8 | 1107 | 7.6 |
| 10 | 4.5 | 405 | 17.1 |
(a) Calculate the value of the correlation coefficient between sale price and size. (Give the answer to three decimal places.)
r =
(b) Calculate the value of the correlation coefficient between sale price and land-to-building ratio. (Give the answer to three decimal places.)
r =
(c) If you wanted to predict sale price and you could use either size or land-to-building ratio as the basis for making predictions, which would you use?
SizeLand-to-building ratio
(d) Based on your choice in Part (c), find the equation of the least-squares regression line you would use for predictingy = sale price. (Give answers to three decimal places.)
=+
