Use the following to answer the questions below:
A quantitatively savvy, young couple is interested in purchasing a home in northern New York. They collected data on houses that had recently sold in the area. They want to predict the selling price of homes (in thousands of dollars) based on the age of the home (in years). Some summary statistics, partial regression output, and a scatterplot of the relationship (with regression line) are provided.
Use two decimal places when reporting the results from any calculations, unless otherwise specified.

-Using the scatterplot, should we have any major concerns about the conditions being met for using a linear model with these data?

Question

Use the following to answer the questions below:
A quantitatively savvy, young couple is interested in purchasing a home in northern New York. They collected data on houses that had recently sold in the area. They want to predict the selling price of homes (in thousands of dollars) based on the age of the home (in years). Some summary statistics, partial regression output, and a scatterplot of the relationship (with regression line) are provided.
Use two decimal places when reporting the results from any calculations, unless otherwise specified.
 
-Using the scatterplot, should we have any major concerns about the conditions being met for using a linear model with these data?

Quizplus · Accepted Answer

There is no curved pattern or fanning in the scatterplot, thus we shouldn't have any major concerns about using a linear model.

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