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?

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Price 210 145 168 352 234 148 217 216 213 143 178 131 181 148 127 158 226 194 166 Size 2.5 15 18 4.7 24 15 2.5 3.3 2.6 6 1.6 14 29 L6 19 17 2.6 19 18 Price 207 139 143 141 142 214 262 191 167 153 153 184 123 182 143 144 16 157 155 Size 28 1.5 5 19 16 2.2 2.7 2.0 2.2 1.6 16 2.3 14 19 16 15 16 17 17 Price 203 147 173 160 219 156 169 133 154 220 151 188 153 215 144 125 152 132 164 Size 2.2 1.8 18 17 2.4 19 19 15 2.9 2.9 19 2.3 17 2.1 1.9 17 17 14 2.0