Exercise 1. A real estate agent wishes to determine the selling price of residences using the size (square feet) and whether the residence is a condominium or a single-family home. A sample of 20 residences was obtained with the following results: Price (S) Type Square Feet Price (S) Type Square Feet 199,700 Family 211,800 200,600 Condo Condo 210,500 Family Family Condo Condo 1,500 1,375 Condo 2,085 208,000 1,825 197,100 Family 228,400 Family 215,800 Family 190,900 1,450 1,650 1,836 233,300 1,960 1,730 187,200 185,200 1,360 Condo 1,726 1,200 312,200 Family 284,100 Family 207,200 Family 258,200 Family Family 2,300 2,000 313,600 Condo 1,650 1,755 239,000 Family 184,400 Condo 1,950 1,850 1,630 1,545 203,100 1. Produce a regression equation to predict the selling price for residences using a model of the following form: Ni = B + Birı + Bn+e

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Equations and inequalities describe the relationship between two mathematical expressions.

Linear Functions

A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.