Regression Line - Cost of Homes compared to Size Classroom Example, Prof. Battaly                                                                                           Statistics This is a graph of data for the the number of square feet (as 100 sq ft) as the independent variable and cost in thousands of dollars for the dependent variable. The data points corresponding to hundreds of square feet (independent variable) and cost in thousands of dollars is plotted for each item of data.  Then the correlation coefficient, r, and the coefficient of determination, r2, is computed from the data points. The last point added to the demo is the predictor point P.  Click and drag P to see the cost in $ thousands predicted by the regression equation.  For this video the location of P is at the point for the prediction of the cost for a home with 3100 square feet.