Real estate prices depend, in part, on property size. The house size X (in hundreds of square feet) and house price Y (in thousands of dollars) of a random sample of houses in a certain county were recorded as in the following table.

a. On the accompanying scatter diagram, sketch by eye a line that fits the data reasonably well. Comment on the relationship between house size and house price.
b. Determine the least-squares estimates of the slope (β1) and the intercept (β0) for the straight-line regression of Yon X.
c. Draw the estimated regression line on the scatter diagram. Comment on how well the line fits the data.
d. Test the null hypothesis that the true slope is 0. Interpret the results of this test.

Transcribed Image Text:

House 2 3 X18 20 2 Y 80 95 104 House 4 5 6 7 22 33 19 17 Y 110 175 5 89 2001 150 100 50 0 510 5 20 25 30 35 House Size () (100s of sq. ft.)