A Real Estate Magazine Reported the Results of a Regression

Multiple Choice

A real estate magazine reported the results of a regression analysis designed to predict the price (y) , measured in dollars, of residential properties recently sold in a northern Virginia subdivision. One independent variable used to predict sale price is GLA, gross living area (x) , measured in square feet. Data for 157 properties were used to fit the model, E(y) = + x. The results of the simple linear regression are provided below.

A) 77% of the total variation in the sample sale prices can be attributed to the linear relationship between GLA (x) and (y) .
B) There is a moderately strong positive correlation between sale price (y) and GLA (x) .
C) 77% of the observed sale prices (y's) will fall within 2 standard deviations of the least squares line.
D) GLA (x) is linearly related to sale price (y) 77% of the time.