1. Forecasting Outside the Range of the Explanatory Variable: Chapter 3.7.2

2. Prediction Least squares estimate of regression model: = Predicted selling price for a house that is 1000 square feet = $50,398 Predicted selling price for a house that is 0 square feet = -$25,222 !

3. Extrapolation Extrapolation: Use of the regression model to predict far outside the range of values of the explanatory variable X that you used to obtain the line. Such predictions are often not accurate.

4. Olympic Long Jump: Length of gold medal jump (Y) vs. Year (X)

5. Predictions from Long Jump Simple Linear Regression Model Predicted Olympic gold medal winning long jumps: – 2008 (Beijing): -78.42771+0.053557*2008 = 29.11 feet –2028: -78.42771+0.053557*2028 = 30.19 feet –3000: -78.42771+0.053557*3000 = 82.24 feet