A real estate agent believes that the setting price o4 a house for a particular

Question

A real estate agent believes that the setting price o4 a house for a particular town is directly related to the number of square feet of the house between 1200 and 2000 ware feet. To justify these assumptions, the agent took a sample of eight houses that had been recently sold and recorded as follows: The least squares regression line is y^x 247.87x 169.630.74. Which two statements are true about this situation? Choose 2 answers If the house sire is 1500 square feet, the predicted selling price is $202.174. If the house size is 1600 square feet, the prediction is not reliable. If the house sire Is 1800 square feet, the predicted selling price is $255, 970. If the house size is 1900 square feet, the predicted selling price is $305, 322. If the house size is 2500 square feet, then the prediction is not reliable.

Explanation / Answer

Given that Selling Price = 247.87*Area(sq ft) - 169630.74

a) area = 1500 sq.ft

Selling price = 247.87*1500 - 169630.74 = $202174.26

b) This option is not correct because 1600 is within the limits i.e. between 1200 and 2000.

c)

area = 1800 sq.ft

Selling price = 247.87*1800 - 169630.74 = $276535.26

d)

area = 1900 sq.ft

Selling price = 247.87*1900 - 169630.74 = $301322.26

e) This option is correct because 2500 doesn't lie within the limits i.e. between 1200 and 2000.

So, correct options are first and the last ones.

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