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Refer to the Real Estate data, which reports information on homes sold in Goodyear, Arizona, last year.
a. Let selling price be the dependent variable and size of the home the independent variable. Determine the regression equation. Estimate the selling price for a home with an area of 2,200 square feet. Determine the 95% confidence interval and the 95% prediction interval for the selling price of a home with 2,200 square feet.
b. Let selling price be the dependent variable and distance from the center of the city the independent variable. Determine the regression equation. Estimate the selling price of a home 20 miles from the center of the city. Determine the 95% confidence interval and the 95% prediction interval for homes 20 miles from the center of the city.
c. Can you conclude that the independent variables “distance from the center of the city” and “selling price” are negatively correlated and that the area of the home and the selling price are positively correlated? Use the .05 significance level. Report the p-value of the test. Summarize your results in a brief report.
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