Calculation of 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    



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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