Review the analysis from Exercise 31. Add a new variable that describes the potential interaction between the

Question:

Review the analysis from Exercise 31. Add a new variable that describes the potential interaction between the loan amount and the number of payments made. Then do a test of hypothesis to check if the interaction is significant.

Data From exercise 31:

You are a new hire at Laurel Woods Real Estate, which specializes in selling foreclosed homes via public auction. Your boss has asked you to use the following data (mortgage balance, monthly payments, payments made before default, and final auction price) on a random sample of recent sales to estimate what the actual auction price will be.

Monthly Payments Payments Auction Loan Made Price $ 85,600 $ 985.87 1 $16,900 115,300 902.56 33 75,800 103,100 736.28 43,900 119,400 1,021.23 58 69,000 90,600 836.46 3 35,600 104,500 1,056.37 22 63,000 ...