The House Selling Prices FL data file on the text CD lists selling prices of homes in Gainesville, Florida, in 2003 and some predictors for the selling price. For the response variable y = selling price in thousands of dollars and the explanatory variable x = size of house in thousands of square feet, ŷ = 9.2 + 77.0x.
a. How much do you predict a house would sell for if it has (i) 2000 square feet, (ii) 3000 square feet?
b. Using results in part a, explain how to interpret the slope.
c. Is the correlation between these variables positive or negative? Why?
d. One home that is 3000 square feet sold for $300,000 Find the residual, and interpret.