# Question: This data table contains the listed prices in thousands of

This data table contains the listed prices (in thousands of dollars) and the number of square feet for 28 homes listed by a realtor in the Seattle area.

(a) Create a scatterplot for the price of the home on the number of square feet. Does the trend in the average price seem linear?

(b) Estimate the linear equation using least squares. Interpret the fitted intercept and slope. Be sure to include their units. Note if either estimate represents a large extrapolation and is consequently not reliable.

(c) Interpret the summary values r2 and se associated with the fitted equation. Attach units to these summary statistics as appropriate.

(d) If a homeowner adds an extra room with 500 square feet to her home, can we use this model to estimate the increase in the value of the home?

(e) A home with 2,690 square feet lists for $625,000. What is the residual for this case? Is it a good deal?

(f) Do the residuals from this regression show pat-terns? Does it make sense to interpret se as the standard deviation of the errors of the ft? Use the plot of the residuals on the predictor to help decide.

(a) Create a scatterplot for the price of the home on the number of square feet. Does the trend in the average price seem linear?

(b) Estimate the linear equation using least squares. Interpret the fitted intercept and slope. Be sure to include their units. Note if either estimate represents a large extrapolation and is consequently not reliable.

(c) Interpret the summary values r2 and se associated with the fitted equation. Attach units to these summary statistics as appropriate.

(d) If a homeowner adds an extra room with 500 square feet to her home, can we use this model to estimate the increase in the value of the home?

(e) A home with 2,690 square feet lists for $625,000. What is the residual for this case? Is it a good deal?

(f) Do the residuals from this regression show pat-terns? Does it make sense to interpret se as the standard deviation of the errors of the ft? Use the plot of the residuals on the predictor to help decide.

**View Solution:**## Answer to relevant Questions

This data table includes the annual prices of 223 commercial leases. All of these leases provide office space in a Midwestern city in the United States. (a) Create a scatterplot for the annual cost of the leases on the ...These data describe spending by a major pharmaceutical company for promoting a cholesterol-lowering drug. The data cover 39 consecutive weeks and isolate the area around Boston. The variables in this collection are shares. ...These data contain quarterly net income (in millions of dollars) of Wal-Mart from 1990 through the end of 2011 (88 quarters). Net income is the difference between sales and the cost of running the business including both the ...This exercise uses base 10 logs instead of natural logs. (a) Using the pet food data of the text example, trans-form the price and volume data using natural logs and then using base 10 logs. Then plot the natural log of ...This figure shows an estimated linear equation along with its 95% prediction intervals. Assume that X counts customers and Y measures dollars. (a) Visually estimate the intercept b0 and the slope b1. (b) Is se (b1) less than ...Post your question