Question: 11.2. For recent data in Florida on y = selling price of home (in dollars), xi = size of home (in square feet), X2 =

11.2. For recent data in Florida on y = selling price of home (in dollars), xi = size of home (in square feet), X2 = lot size (in square feet), the prediction equation is y = —10,536 + 53.8xi + 2.84x2.

(a) A particular home of 1240 square feet on a lot of 18,000 square feet sold for $145,000. Find the predicted selling price and the residual, and interpret.

(b) For fixed lot size, how much is the house selling price predicted to increase for each square foot increase in home size? Why?

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