The scatterplot below shows the sale price of a home, in dollars, against the distance of the home from the city centre of Melbourne, in kilometres, distance from city centre.
The sample consists of three‑bedroom homes sold between 2016 and 2018
The equation of the least squares line for the data in the scatterplot is
sale price\(=1\,765\,353-35\,054 \times\)distance from city centre
The coefficient of determination is 0.0806
- Identify the explanatory variable in the least squares equation. (1 mark)
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- Calculate the value of the correlation coefficient \(r\). Round your answer to three decimal places. (1 mark)
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- Use the equation of the least squares line to predict the sale price for a three-bedroom home, located in the city centre of Melbourne, sold between 2016 and 2018. (1 mark)
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- Jocelyn wants to sell her three-bedroom home located two kilometres from the city centre of Melbourne.
- Would the predicted sale price be an example of interpolation or extrapolation?
- Briefly explain your answer. (1 mark)
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- Describe the linear association between sale price and distance from city centre in terms of its strength and direction. Answer in the table below. (2 marks)
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\begin{array}{|l|l|}
\hline \rule{0pt}{2.5ex}\text {strength} \quad \quad \rule[-1ex]{0pt}{0pt}& \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \\
\hline \rule{0pt}{2.5ex}\text {direction} \rule[-1ex]{0pt}{0pt}& \\
\hline
\end{array}
- A residual plot associated with the least squares line is shown below.
- It is missing one point.
- The residual associated with the home that is furthest from the city centre of Melbourne is missing from the residual plot. The home is 15.5 km from the city centre and sold for $1 250 000.
- Show that the value of the missing residual is 27 984. (1 mark)
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- Plot the residual from part i by placing an \(\text{X}\) on the residual plot above. (1 mark)
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- Show that the value of the missing residual is 27 984. (1 mark)

