A regression analysis of 117 homes for sale produced the following regression eq

Question

A regression analysis of 117 homes for sale produced the following regression equation, where price is in thousands of dollars and size is in square feet.

(a) What does the slope of the line say about housing prices and size?

(b) A realtor shows a potential buyer a 1000 square-foot house, saying that the asking price is $5,000 less than what one would expect to pay for a house of this size. What is the asking price of this house and what is the residual?

The asking price is $108,810 and the residual is a positive $5,000.The asking price is $108,810 and the residual is a negative $5,000.    The asking price is $103,810 and the residual is a positive $5,000.The asking price is $103,810 and the residual is a negative $5,000.

Explanation / Answer

a. what does the slope say ?

The slope says if one unit size is increse the price will increase by 0.061 unit

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