You are a new hire at Laurel Woods Real Estate, which specializes in selling foreclosed homes...

 

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You are a new hire at Laurel Woods Real Estate, which specializes in selling foreclosed homes via public auction. Your boss has asked you to use the following data (mortgage balance, monthly payments, payments made before default, and final auction price) on a random sample of recent sales to estimate what the actual auction price will be. Loan $ 85,610 113,183 Monthly Payments Payments Made Auction Price $1,057.52 1 $38,675 949.56 37 17,900 111,679 746.28 12 47,550 94,570 824.03 11 16,600 97,600 945.51 24 40,700 104,400 983.27 17 63,100 113,800 1,075.54 18 72,600 116,400 1,087.16 35 72,300 100,000 900.01 33 58,100 92,800 683.11 36 37,100 105,200 915.24 34 52,600 105,900 905.67 38 51,900 94,700 810.70 25 43,200 105,600 891.33 20 52,600 104,100 864.38 7 42,700 85,700 1,074.73 30 22,200 113,600 871.61 24 77,000 119,400 1,021.23 58 69,000 90,600 104,500 836.46 1,056.37 3 35,600 22 63,000 Add a new variable that doccribes the notential interaction between the loan amount and the number of navments made. Then do a You are a new hire at Laurel Woods Real Estate, which specializes in selling foreclosed homes via public auction. Your boss has asked you to use the following data (mortgage balance, monthly payments, payments made before default, and final auction price) on a random sample of recent sales to estimate what the actual auction price will be. Loan $ 85,610 113,183 Monthly Payments Payments Made Auction Price $1,057.52 1 $38,675 949.56 37 17,900 111,679 746.28 12 47,550 94,570 824.03 11 16,600 97,600 945.51 24 40,700 104,400 983.27 17 63,100 113,800 1,075.54 18 72,600 116,400 1,087.16 35 72,300 100,000 900.01 33 58,100 92,800 683.11 36 37,100 105,200 915.24 34 52,600 105,900 905.67 38 51,900 94,700 810.70 25 43,200 105,600 891.33 20 52,600 104,100 864.38 7 42,700 85,700 1,074.73 30 22,200 113,600 871.61 24 77,000 119,400 1,021.23 58 69,000 90,600 104,500 836.46 1,056.37 3 35,600 22 63,000 Add a new variable that doccribes the notential interaction between the loan amount and the number of navments made. Then do a