The following data on sale price, size, and land-to-building ratio for 10 large industrial properties appeared in a paper.
| Property |
Sale Price
(millions
of dollars) |
Size
(thousands
of sq. ft.) |
Land-to-
Building
Ratio |
| 1 |
10.7 |
2166 |
2.1 |
| 2 |
2.7 |
750 |
3.4 |
| 3 |
30.4 |
2423 |
3.6 |
| 4 |
1.7 |
223 |
4.6 |
| 5 |
20.0 |
3916 |
1.6 |
| 6 |
7.9 |
2866 |
2.4 |
| 7 |
10.1 |
1699 |
3.2 |
| 8 |
6.6 |
1047 |
4.7 |
| 9 |
5.8 |
1108 |
7.7 |
| 10 |
4.6 |
404 |
17.2 |
(a) Calculate the value of the correlation coefficient between sale price and size. (Give the answer to three decimal places.)
(b) Calculate the value of the correlation coefficient between sale price and land-to-building ratio. (Give the answer to three decimal places.)
(c) If you wanted to predict sale price and you could use either size or land-to-building ratio as the basis for making predictions, which would you use?
Size
Land-to-building ratio
(d) Based on your choice in Part (c), find the equation of the least-squares regression line you would use for predicting y = sale price. (Give answers to three decimal places.)