Question: An article in Techno metrics by S. C. Narula and J. F. Wellington (Prediction, Linear Regression, and a Minimum Sum of Relative Errors, Vol. 19,

An article in Techno metrics by S. C. Narula and J. F. Wellington (€œPrediction, Linear Regression, and a Minimum Sum of Relative Errors,€ Vol. 19, 1977) presents data on the selling price and annual taxes for 24 houses. The data are shown in the following table.
(a) Assuming that a simple linear regression model is appropriate, obtain the least squares fit relating selling price to taxes paid. What is the estimate of σ2?

Taxes Taxes (Local, School), Price/1000 County)/1000 Price/I000 County)/1000 Sale (Local, School), Sale 25.9 4.9176 30.0 5.0500 29.5 5.0208 36.9 8.2464 27.9 4.5429 41.9 6.6969 25.9 4.5573 40.5 7.7841 29.9 5.0597 43.9 9.0384 29.9 3.8910 37.5 5.9894 30.9 5.8980 37.9 7.5422 5.6039 28.9 44.5 8.7951 37.9 6.0831 35.9 5.8282 31.5 5.3003 38.9 8.3607 36.9 31.0 6.2712 8.1400 30.9 45.8 5.9592 9.1416

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