Bautista, Mark

Canlas, Silk
Dela Fuente, Maynard
Tan, Jendric
Tuazon, Jacob
LBOSIMU K35

a. Home’s property taxes = 6,499.41 + 6.81 size + e

b. 0.576 or R^2 is the portion that explains the home’s size

c. 0.424 is not explained

i. 1 - 0.576 = 0.424 = 42.4%

a. Ownership = 78.8 - 0.000203(Income) + E

i. The coefficient attached to income is unexpected since it is supposed to have a

positive relationship with home ownership rate.

b. SE = 5.46

c. Coefficient of determination: 6.74% of the total variability in the homeownership rate can
be explained by its linear relationship with the median household income.

i. This is not a promising model as 93.26% (1-0.0674) of the total variability in the
homeownership rate cannot be explained by its linear relationship with the
median household income.