Table 12.5.1 shows data on Picasso paintings giving the price, area of canvas, and year for each one.
a. Find the regression equation to predict price from area and year.
b. Interpret the regression coefficient for area.
c. Interpret the regression coefficient for year.
d. What would you expect the sales price to be for a 1954 painting with an area of 4,000 square centimeters?
e. About how large are the prediction errors for these paintings?
f. What percentage of the variation in prices of Picasso paintings can be attributed to the size of the painting and the year in which it was painted?
g. Is the regression significant? Report the results of the appropriate test and interpret its meaning.
h. Does area have significant impact on price, following adjustment for year? In particular, are larger paintings worth significantly more or significantly less on average than smaller paintings from the same year?
i. Does year have a significant impact on price, following adjustment for area? What does this tell you about older versus newer paintings?

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TABLE 12.5.1 Price, Area, and Year for Picasso Paintings Price (thousands) S100 50 120 400 375 28 35 750 145 260 78 90 Area (square cm) Year 1911 1914 1920 1921 1921 1922 1923 1923 1932 1934 1940 1941 768 667 264 1,762 10,109 945 598 5,256 869 7,876 1,999 5,980 Price (thousands) Area (square cm Year 1,141 5,520 5,334 1,656 2,948 3,510 6,500 1,748 3,441 7,176 6,500 $360 150 65 58 65 95 210 32 1943 1944 1944 1953 1956 1960 1963 1965 1968 1969 1969 80 18