A real estate investor in the city of Santa Monica, California wishes to determine the selling price of California residences using the size (square feet) and whether the residence is a condominium or a single-family home. A sample of 20 residences was obtained with the following results:

NM = 83

c. Calculate P-values and a 95% confidence interval for both slopes of both variables. Interpret them. (4 marks)
d. Produce an equation that describes the relationship between the selling price and the square footage of (1) condominiums and (2) single-family homes.

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Price ($) Туре Square feet $424,000.00 $428,000.00 $421,000.00 $465,000.00 f 2500 + NM 2400 + NM f 2100 + NM 2500 + NM $446,000.00 $397,000.00 $583,000.00 $572,000.00 $479,000.00 $389,000.00 $412,000.00 $423,000.00 $438,000.00 $471,000.00 f 2300 + NM 2100 + NM 3300 + NM 3200 + NM f 2600 + NM 2100 + NM 2200 + NM 2300 + NM 2300 + NM f 2500 + NM $393,000.00 $390,000.00 2100 + NM 2100 + NM $543,000.00 $434,000.00 $506,000.00 $429,000.00 f 3000 + NM 2300 + NM 2800 + NM 2200 + NM f f Where NM is the last two digits of your student ID number. a. Produce a regression equation to predict the selling price for residences using a model of the following form: yi = Bo + Bix1 + B2x2 +e Where x, = Square Footage (1, if a condomnium 0, if a single-family home (4 marks) b. Interpret the parameters Bi, and Ba in the model given in part a. Price ($) Туре Square feet $424,000.00 $428,000.00 $421,000.00 $465,000.00 f 2500 + NM 2400 + NM f 2100 + NM 2500 + NM $446,000.00 $397,000.00 $583,000.00 $572,000.00 $479,000.00 $389,000.00 $412,000.00 $423,000.00 $438,000.00 $471,000.00 f 2300 + NM 2100 + NM 3300 + NM 3200 + NM f 2600 + NM 2100 + NM 2200 + NM 2300 + NM 2300 + NM f 2500 + NM $393,000.00 $390,000.00 2100 + NM 2100 + NM $543,000.00 $434,000.00 $506,000.00 $429,000.00 f 3000 + NM 2300 + NM 2800 + NM 2200 + NM f f Where NM is the last two digits of your student ID number. a. Produce a regression equation to predict the selling price for residences using a model of the following form: yi = Bo + Bix1 + B2x2 +e Where x, = Square Footage (1, if a condomnium 0, if a single-family home (4 marks) b. Interpret the parameters Bi, and Ba in the model given in part a.

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