Question: (a) Using the estimates obtained in part (a) of Exercise 8.8 as the parameter values, and assuming normally distributed errors, find the probability that (i)
(a) Using the estimates obtained in part
(a) of Exercise 8.8 as the parameter values, and assuming normally distributed errors, find the probability that (i) your 1400-
square-foot house sells for more than $115,000 and (ii) your 1800-square-foot house sells for less than $110,000.
(b) After making the correction ^
a^1 ¼ a^1 þ 1:2704; use the estimates obtained in parts
(d) and
(e) of Exercise 8.8 as the parameter values and, assuming normally distributed errors, find the probability that (i) your 1400-square-foot house sells for more than $115,000 and (ii) your 1800-square-foot house sells for less than
$110,000.
(c) Comment on and compare the answers you obtained in parts
(a) and (b).
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