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## Correlation Coefficient

Find the correlation coefficient between List Price and each of the following variables.
• Bedrooms
• Baths-Total
• Stories d. Square footage
• Year Built f. Acreage
The correlation coefficients of list price with other variables are as follows:
 List Price Bedrooms 0.73 Baths - Total 0.73 Stories 0.24 Square Footage 0.87 Year Built 0.01 Acreage 0.53

## Interpreting Correlation Coefficient

For the variable in question 1 with the largest effect on List Price,
a. Interpret the correlation coefficient. (It must contain three key terms.)
b. Find the equation of the regression line.
c. Interpret the slope.
d. Draw the scatterplot with the regression line plotted.
e. Predict the List Price for the 25 th , 70th , and 78 th listed property.
f. Find the coefficient of determination.
g. Interpret the coefficient of determination. (Both percentages must be discussed.)
25th property is 3237 = 3190.107 + 200.1043*3237 = $650,927.7 70th property is 4433 = 3190.107 + 200.1043*4433 =$890,252.4