The following data on sale price, size, and land-to-building ratio for 10 large industrial properties appeared in the paper €œUsing Multiple Regression Analysis in Real Estate Appraisal€ (Appraisal Journal [2002]: 424€“430):

a. Calculate and interpret the value of the correlation coefficientbetween sale price and size.
b. Calculate and interpret the value of the correlation co ef fi cient between sale price and land-to-building ratio.
c. If you wanted to predict sale price and you could use either size or land-to-building ratio as the basis for making predictions, which would you use? Explain.
d. Based on your choice in Part (c), find the equation of the least-squares regression line you would use for predicting y ‰ˆ sale price. y =5 1.333 + 0.00525x

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Sale Price (millions of (thousands Building Size Land-to- dollars) of sq. ft.) 2166 751 2422 224 3917 2866 1698 1046 1108 405 Property Ratio 0.6 2.6 30.5 3.5 4.7 2.3 20.0 8.0 10.0 6.7 6 4.8 7.6 17.2 10 4.5