EBK STATISTICS FOR BUSINESS & ECONOMICS
12th Edition
ISBN: 9780100460461
Author: Anderson
Publisher: YUZU
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Textbook Question
Chapter 14.8, Problem 49E
Recent family home sales in San Antonio provided the following data (San Antonio Realty Watch website, November 2008).
| Square Footage | Price ($) |
| 1580 | 142,500 |
| 1572 | 145,000 |
| 1352 | 115,000 |
| 2224 | 155,900 |
| 1556 | 95,000 |
| 1435 | 128,000 |
| 1438 | 100,000 |
| 1089 | 55,000 |
| 1941 | 142,000 |
| 1698 | 115,000 |
| 1539 | 115,000 |
| 1364 | 105,000 |
| 1979 | 155,000 |
| 2183 | 132,000 |
| 2096 | 140,000 |
| 1400 | 85,000 |
| 2372 | 145,000 |
| 1752 | 155,000 |
| 1386 | 80,000 |
| 1163 | 100,000 |
- a. Develop the estimated regression equation that can be used to predict the sales prices given the square footage.
- b. Construct a residual plot of the standardized residuals against the independent variable.
- c. Do the assumptions about the error term and model form seem reasonable in light of the residual plot?
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Chapter 14 Solutions
EBK STATISTICS FOR BUSINESS & ECONOMICS
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