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Solution Library
Calculate Regression Analysis
Question
A planning official in the Texas Department of Community Affairs, which works in the office next to you, has a problem. He has been handed a data set from his boss that includes the costs involved in developing local land use plans for communities with populations between 75,000 and 125,000. The boss has a hunch that the plans are more expensive as population increases. He has no idea how to decide and asks for your assistance. Given the data in the following table, using regression analysis, are the plans more expensive (I mean statistically significantly different) as population increase? You must use SPSS for this question.
Community Population Cost
1 77000 12500
2 87000 13700
3 76000 12000
4 124000 23000
5 100000 21000
6 110000 19000
7 115000 22000
8 98000 18000
9 87000 13500
10 123000 27000
11 95000 17000
12 121000 21000
13 113000 22000
14 105000 19000
15 102000 17000
16 104000 23000
17 75000 14000
18 85000 14000
From the above given data, using your linear regression, predict the cost of the city plan for a community with a population of 250,000. Explain and discuss your model in detail. For example how well does it explain the variation in plan cost? Do the model’s residuals behave appropriately? In short discuss the pluses and minuses regarding your model.
Summary
The question belongs to Statistics and it is about calculating communities that have been allotted land and the cost of such allocation with population of the community as a parameter. A regression analysis needs to be done, which has been given in detailed in the solution.
Total Word Count 165
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