Recent family home sales in San Antonio provided the following data (San Antonio Realty Watch website, November 2008).

a. Develop the estimated regression equation that can be used to predict the sales prices given the square footage.
b. Construct a residual plot of the standardized residuals against the independent variable.
c. Do the assumptions about the error term and model form seem reasonable in light of the residual plot?

Transcribed Image Text:

Price (S) Square Footage 1580 1572 1352 1556 1435 1438 1089 1941 1698 1539 1364 1979 2183 2096 1400 2372 1752 1386 1163 142,500 145,000 115,000 155,900 95,000 128,000 100.000 55,000 142,000 115,000 115,000 105,000 155,000 132,000 140,000 85,000 145,000 155,000 80,000 100,000