Years of experience buying and selling commercial real estate have convinced many investors that the value of land zoned for business (y) is inversely related to its distance (x) from the center of town€”that is, y = a + b · 1/x. If that suspicion is correct, what should be the appraised value of a piece of property located 1/4 mile from the town square, based on the sales listed below?

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Distance from Value Land Center of City (in Parcel thousand feet), x in thousands), y 1.00 0.50 0.25 2.00 4.00 6.00 10.00 S20.5 42.7 80.4 10.5 6.1 6.0 3.5 H1 B6 L4 T7 D9 E4