Getting ready

Let's use some real data so that we can calculate correlation more meaningfully. The following were the sizes and prices of houses in the City of Saratoga, California, in early 2014:

House size (sq ft) Price
2100 $1,620,000
2300 $1,690,000
2046 $1,400,000
4314 $2,000,000
1244 $1,060,000
4608 $3,830,000
2173 $1,230,000
2750 $2,400,000
4010 $3,380,000
1959 $1,480,000
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