Sta510 Business Statistics-The Management Of The Agency

School BusinessFaculty of Law, Business &amp, EducationSemester 2, 20161 of 3STA510 Business StatisticsPART A: Question 1 – Case StudySchool BusinessFaculty of Law, Business &amp, EducationSemester 2, 20162 of 3STA510 Business StatisticsThe management of the agency are particularly interested in the rating of the street andsuggest that you develop a model to investigate the relationship between house prices andrating of the street in which the house is located. From a sample of 120 houses the above excel output was obtained. To help the managementof BCREA to make decisions, answer the following questions: a) Determine the equation of the least squares regression line and explain the regressionequation. [3 Marks]b) What is the standard error of the estimate (Se)? Comment on the size of the standard errorfor this regression model. [3 Marks]c) Test the slope of the regression line and what do you conclude about the slope?[3 Marks]d) What is the coefficient of determination for this model? Does street rating appear to be agood predictor of house prices? Why or why not?[3 Marks]e) Finally, write a very brief report based on the information available for management. [8 Marks]PART BQuestion 1The city commission is considering raising property taxes to finance a new library. Thecommission feels they should tax only those who own homes valued in the top 40 percent. Ifproperty values can be expressed as X ~ N($62,500, $8,250), what is the highest value thatcan be placed on a property without being subjected to the tax?[5 Marks]Question 2The average life expectancy of males in a developing nation was believed to be 62. 5 years. However, the belief was based on data that might be considerably out of date. A randomsurvey of 250 deaths in that country revealed an average life span of 64. 2 years with astandard deviation of 8. 8 years. Does the sample evidence indicate that the mean lifeexpectancy defers from 62. 5 years? Use a significance level of 0. 05. [5 Marks]*******School BusinessFaculty of Law, Business &amp, EducationSemester 2, 20163 of 3STA510 Business Statistics

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