Data about existing home sales in area 232 of Palo Alto, California, in 2007 are shown in Table 20. A list price is the price an owner originally requested before negotiations began. Let L be the list price (in thousands of dollars) of a home, and let S be the home’s sales price (in thousands of dollars).
a. Construct a scatterplot that describes the association between list prices and sales prices.
b. On the scatterplot, imagine a line that goes through the points (1000, 1000), (1500, 1500), (2000, 2000), and (2500, 2500). Or use a strand of thread, a stretched rubber band, or the edge of a clear ruler to form the line. If a home’s data point lies on the line, what can we say about the list price and sales price?
c. Does the line from part (b) come close to few, most, or all of the data points in the scatterplot? For each home whose data point is close to the line, what can we say about the list price and the sales price?
d. Determine the street of the home that sold for the most over the list price. Explain how sizing up the scatterplot can help narrow your search so you do not have to perform so many calculations.
e. Determine the street of the home that sold for the most under the list price. Explain how sizing up the scatterplot can help narrow your search so you do not have to perform so many calculations.