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A regression study was performed to examine the relationship between the selling price (y) and annua

Question: A regression study was performed to examine the relationship between the selling price (y) and annual local, county, and school taxes (x). The data were collected for 24 houses and shown in the following table.

Sale Price ($10,000)	Taxes ($1000)
25.9	4.9176
29.5	5.0208
27.9	4.5429
25.9	4.5573
29.9	5.0597
29.9	3.891
30.9	5.898
28.9	5.6039
35.9	5.8282
31.5	5.3003
31.0	6.2712
30.9	5.9592
30.0	5.05
36.9	8.2464
41.9	6.6969
40.5	7.7841
43.9	9.0384
37.5	5.9894
37.9	7.5422
44.5	8.7951
37.9	6.0831
38.9	8.3607
36.9	8.14
45.8	9.1416

a. Consider the general SLR model, y = ?₀+?₁x+?. Perform a complete regression analysis (following and indicating the 8 steps in regression modeling) using the data. Interpret your output, stating hypotheses and conclusions. Test the normality assumption using the appropriate statistical test, and test the constant variance and uncorrelated errors assumptions using graphical methods. Assume the significance level, ?=5%.

b. Now fit the no-intercept model, y = ?₁x+? to the data. Again, perform a complete regression analysis (following and indicating the 8 steps in regression modeling) using the data. Interpret your output, stating hypotheses and conclusions. Test the normality assumption using the appropriate statistical test, and test the constant variance and uncorrelated errors assumptions using graphical methods. Assume the significance level, ?=5%.

c. Which model would you recommend? Why?

Price: $2.99

Solution: The answer consists of 8 pages
Deliverable: Word Document