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Six Sigma Green Belt Exam Prep

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Jeffrey is a real estate agent who wishes to study the relationship between the selling price of a house and its size (measured in feet) in Manhattan. He develops a simple linear regression model as seen below. What is the slope of the model?
Houseprice = 95.5 + 0.25 (square feet) + 13
  1. 95.5
  2. 0.25
  3. 13
  4. 4.5
Explanation
Answer: B - The slope of the above model is 0.25.

Key Takeaway: A simple linear regression model contains three components: intercept, slope, and error term. The slope of the model is multiplied by the independent variable (size of the house) in the equation in order to calculate the dependent variable (house price).
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