The sales manager at Sun City Real Estate Company in Tempe, Arizona, is interested in describing the relationship between condo sales prices and the number of weeks the condo is on the market before it sells. He has collected a random sample of 17 low-end condos that have sold within the past three months in the Tempe area. These data are shown as follows:
Weeks on the MarketSelling Price
23……………………………………..$76,500
48……………………………………$102,000
9……………………………………..$53,0002
6……………………………………….$84,200
20………………………………………$73,000
40……………………………………$125,000
51……………………………………$109,000
18……………………………………$60,000
25……………………………………$87,000
62……………………………………$94,000
33……………………………………$76,000
11……………………………………$90,000
15……………………………………$61,000
26……………………………………$86,000
27……………………………………$70,000
56…………………………………..$133,000
12………………………………………$93,00
a. Develop a simple linear regression model to explain the variation in selling price based on the number of weeks the condo is on the market.
b. Test to determine whether the regression slope coefficient is significantly different from 0 using a significance level equal to 0.05.
c. Construct and interpret a 95% confidence interval estimate for the regression slope coefficient.