(FOR THIS QUESTION PLEASE SHOW YOUR WORK. PLEASE SATE AND USE FORMULAS. PLEASE, I NEED TO COMPARE)

(Xr16-07) Florida condominiums are popular winter retreats for many North Americans. In recent years, the prices have steadily increased. A real estate agent wanted to know why prices of similar-sized apartments in the same building vary. A possible answer lies in the floor. It may be that the higher the floor, the greater the sale price of the apartment. He recorded the price (in $1,000s) of 1,200 sq. ft. condominiums in several buildings in the same location that have sold recently and the floor number of the condominium.

a. Predict with 95% confidence the selling price of a 1,200 square feet condominium on the 20^th floor.

b. Estimate with 99% confidence the average selling price of a 1200 square feet condominium on the 15^th floor.

c. Does it appear that the errors are normally distributed? Explain.

d. Does it appear that heteroscedasticity is a problem? Explain.

Floor Price

22 212

20 225

16 261

4 184

18 232

18 222

21 210

13 201

14 189

8 200

4 203

2 196

16 220

13 245

12 211

8 216

21 256

7 173

8 194

8 196

23 182

21 230

10 216

9 188

15 210

1 216

27 218

8 169

27 235

8 227

10 191

1 203

27 223

14 206

28 204

4 190

28 246

8 168

10 193

12 186

7 193

27 224

21 231

6 183

21 224

9 212

12 232

7 193

18 233

12 249