Question

Home Size and Value. The data from Exercise 14.38 for home size (in square feet) and assessed value (in thousands of dollars) for the same homes as in Exercise 14.137 are on the WeissStats site. Do the data provide sufficient evidence to conclude that, for homes in this particular area, home size and assessed value are positively linearly correlated?

Short answer

The correlation $t$-test procedure is not reasonable to apply for the given data.

Step-by-step solution

Step 1:Given information

The data from Exercise 14.38 for home size (in square feet) and assessed value (in thousands of dollars) for the same homes as in Exercise 14.137 are on the WeissStats site

Step 2:Explaination

Check whether reasonably to apply the correlation t-test procedure to data by using Exercise 14.38.

- From the residual plot, it is clear that the residuals are fall in the horizontal band.

- From the normal probability plot of residuals, it is clear that the residuals are differs from the linear pattern.

Hence, the assumption 3 for the regression inferences is violated for the variables value and home size.

Hence, the correlation $t$-test procedure is not reasonable to apply for the given data.