A realtor in a suburban area attempted to predict house prices solely on the basis of size. From a listing service, the realtor obtained size in thousands of square feet and asking price in thousands of dollars.
a. Obtain a plot of price against size. Does it appear there is an increasing relation?
b. Locate an apparent outlier in the data. Is it a high leverage point?
c. Obtain a regression equation, and include the outlier in the data.
d. Delete the outlier, and obtain a new regression equation. How much does the slope change without the outlier? Why?
e. Locate the residual standard deviations for the outlier- included and outlier- ­excluded models. Do they differ much? Why?

  • CreatedNovember 21, 2015
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