Regression Paper
What impacts the value of a home's selling price compared to the way taxes are assessed? Are taxes based on the square footage, lot size, or average income in the area? There are countless possible impacts to the value of a home that could exist for determining a home's selling price and taxes that may be assessed. For the purpose of deeply analyzing this question even further, the authors decided to use not only their own analysis of home sales as compared to square footage, but also a peer reviewed supporting article that may provide a different perspective into the effects of home selling prices and how these homes are taxed. This paper will attempt to analyze the hypothesis that the slope of the regression line is equal to zero. In order to prove this hypothesis statement to be true, a regression test will be performed to further analyze this topic further along with a 5 step hypothesis test.
Testing Results
To analyze this hypothesis statement to be true, a 5 step hypothesis test was performed. (Test 1 ? Appendix B). The null hypothesis identified for analysis, is that the slope of the regression line is equal to zero. Therefore, the alternative hypothesis is that the slope of the regression line is not equal to zero. In order to validate this research, data was used from the real estate data set for analysis. Since a 95% confidence is expected in our data, the significance level used was a value where a is equal to .05. The real estate data set was used to compare the independent variable of price to the dependent variable of size in square feet.
However, to reject the null hypothesis, one more step is critical. A regression test is performed to determine whether or not, the null hypothesis will be rejec ...