Data for this problem are in the table below. These data enable you to apply the methods that we are studying to the real estate area to answer this two-part question.

The data set contains information about apartment prices and characteristics for a central area of a city. The data include sale price (PRICE) in $, floor area (SQFT) in square feet, number of bedrooms (BED), number of bathrooms (BATH), number of floors in the building (FLOORS), and distance from a crowded and busy city landmark, the 'Presidential Tower' (PDIST) in feet.

The type of model that we study in this problem (regressing price against characteristics of dwelling and location) is commonly used for automating property tax assessments.

(a)The price can be related to the characteristics of the dwelling and location in many ways. Two of these are given by the following models.

Ln (PRICE ) = Bo + B, Ln(SQFT) + B- BED + B, BATH + B. FLOORS + BPDIST