Calculate Regression Analysis


A planning official in the Texas Department of Community Affairs, which works in the office next to you, has a problem. He has been handed a data set from his boss that includes the costs involved in developing local land use plans for communities with populations between 75,000 and 125,000. The boss has a hunch that the plans are more expensive as population increases. He has no idea how to decide and asks for your assistance. Given the data in the following table, using regression analysis, are the plans more expensive (I mean statistically significantly different) as population increase?  You must use SPSS for this question.

Community    Population      Cost       
1                    77000          12500       
2                    87000          13700       
3                    76000          12000       
4                  124000          23000       
5                  100000          21000       
6                  110000         19000       
7                  115000         22000       
8                    98000         18000       
9                    87000         13500       
10                 123000         27000       
11                   95000         17000       
12                 121000         21000       
13                 113000         22000       
14                 105000         19000       
15                 102000         17000       
16                 104000         23000       
17                   75000         14000       
18                   85000         14000    

From the above given data, using your linear regression, predict the cost of the city plan for a community with a population of 250,000. Explain and discuss your model in detail. For example how well does it explain the variation in plan cost? Do the model’s residuals behave appropriately? In short discuss the pluses and minuses regarding your model.


The question belongs to Statistics and it is about calculating communities that have been allotted land and the cost of such allocation with population of the community as a parameter. A regression analysis needs to be done, which has been given in detailed in the solution.

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