Question: For the Houses data filedescribedin Section 7.1.3, consider Y = selling price, x1 = tax bill(in dollars), and x2 = whether thehouseisnew. (a) Formthescatterplotof y

For the Houses data filedescribedin Section 7.1.3, consider Y = selling price, x1 = tax bill(in dollars), and x2 = whether thehouseisnew.

(a) Formthescatterplotof y and x1. DoesthenormalGLMstructureofconstantvariability in y seem appropriate?Ifnot,howdoesitseemstobeviolated?

(b) Usingtheidentitylinkfunction,fitthe(i)normalGLM,(ii)gammaGLM.Foreach model,interprettheeffectof x2.

(c) Foreachmodel,describehowtheestimatedvariabilityinsellingpricesvariesasthemean selling pricevariesfrom100thousandto500thousanddollars.

(d) WhichmodelispreferredaccordingtoAIC?

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