Casio ALGEBRA FX2.0 Advanced Statistics Examples 1 User Manual

Page 17

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17

examples

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Example

A survey conducted by a city on its real estate investments revealed
the following data on the relationship between area and price.
Does the data indicate that the value

β

1

, that is, the slope of the popula-

tion regression line, is not zero, which would mean that

x

(Area) can be

use as a predictor of y (Sales Price)? Use a 5% level of significance.

Procedure

1

m

STAT2

2 j

wbfwbawbbwbaw

e
dg

wiaweewffwdfw

3

3

(TEST)

c

(T)

d

(LinReg)

4

1

(

)

c

1

(LIST)

b

wc

1

(LIST)

c

wc

1

(1)

c

1

(None)

c

5

1

(CALC)

Result Screen

Since P = 6.4531e-3 < 0.05 (level of significance), we can reject the null hypothesis

β

1

≠ 0

and conclude that there is a linear relationship

y

=

β

0

+

β

1

x

+

ε

between area(

x

) and price(

y

).

x Area (square feet)

9

15

10

11

10

y Sales Price (

Ч

$1000)

36

80

44

55

35

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