The National Association of Realtors maintains a database consisting of sales information on homes sold in the United States. The next table lists the sale prices for a sample of 28 recently sold, single-family homes. The table also identifies the region of the country in which the home is located and the total number of homes sold in the region during the month the home sold.

a. Propose a complete second-order model for the sale price of a single-family home as a function of region and sales volume.
b. Give the equation of the curve relating sale price to sales volume for homes sold in the West.
c. Repeat part b for homes sold in the Northwest.
d. Which β's in the model, part a, allow for differences among the mean sale prices for homes in the four regions?
e. Fit the model, part a, to the data using an available statistical software package. Is the model statistically useful for predicting sale price? Test using α = .01.

Transcribed Image Text:

Home Price Sales Volume $218.200 235,900 192.888 200.990 345,300 178,999 240,855 183.200 165.225 160,633 173,900 241,000 188,950 192.880 193,000 211,980 179.500 185,650 250,900 190,990 242,790 258,900 202,420 365,900 219,900 228,250 235,300 269,800 55.156 61,025 48,991 55,156 60,324 51,446 61,025 94.166 92,063 89,485 91.772 99,025 94,166 95,688 155,666 160,000 153,540 148,668 163.210 141,822 163,611 109.083 101.111 116,983 08,773 105,106 107839 109,026 NE NW NW NW NW NW NW NW NW