Question

Acreage and Value. The data from Exercise $14.37$for lot size (in acres) and assessed value (in thousands of dollars) of a sample of homes in a particular area are on the WeissStats site. Specified value of the predictor variable: $2.5$acres.

Short answer

It is not applying the conditional mean and predicted value t-interval procedure to the given data in a reasonable manner. As a result, parts (b) through (f) are omitted.

Step-by-step solution

Given information

To determine whether the conditional mean and predated value t-interval procedures can be applied to data.

Explanation

Given that,

Calculation:
Using the data from Exercise $14.37$, determine whether it is reasonable to apply the conditional mean and predated value t-interval procedure to data.

• The residual plot clearly shows that the residuals are in the horizontal band.
• The normal probability plot of residuals reveals that the residuals follow a roughly linear pattern.
• As a result, for the variables value and lot size, assumptions $1-3$for regression inferences are not violated. However, it is clear from Exercise $14.73$that the observations do not follow a linear pattern.

Part 3: Conclusion

As a result, applying the conditional mean and predicted value t-interval procedure to the given data is not reasonable. As a result, parts (b) through (f) are omitted.