This data table contains the listed prices (in thousands of dollars) and the number of square feet
Question:
(a) The data used previously for this analysis exclude a home with 2,500 square feet that costs $1.5 million ($1,500 thousand) and is on a lot with 871,000 square feet. Add this case to the data table and refit the indicated model.
(b) Compare the ft of the model with this large home to the ft without this home. Does the slope or intercept differ by very much between the two cases? Use one estimated model as your point of reference.
(c) Which is more affected by the outlier: the estimated fixed costs or the estimated marginal cost?
(d) Outliers often shout “There’s a reason for me being different!” Consider the non missing values in the column labeled Lot Size. These give the number of square feet for the size of the lot that comes with the home. Does this column help explain the outlier and suggest a lurking variable?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Statistics For Business Decision Making And Analysis
ISBN: 9780321890269
2nd Edition
Authors: Robert Stine, Dean Foster
Question Posted: