Florida condominiums are popular winter retreats for many No

Florida condominiums are popular winter retreats for many North Americans. In recent years, the price has steadily increased. A real estate agent wanted to know why prices of similar-size apartments in the same building vary. A possible answer lies in the floor. It may be that the higher the floor, the greater the sale price of the apartment. He recorded the price (in $1,000s) of 1,200-square-foot condominiums in several buildings in the same location that have sold recently and the floor number of the condominium.

a) Determine the regression line.

b) What do the coefficients tell you about the relationship between the two variables?

c) Apply the three methods of assessing the model to determine how well the linear model fits.

d) Predict with 95% confidence the selling price of a 1,200-sq.-ft. condominium on the 25th floor.

e) Estimate with 99% confidence the average selling price of a 1,200-sq.-ft. condominium on the 12th floor.

Solution

data not given.

Procedure:

The regression equation is y-a+bx

first first the regression euation.

Identify Intercept and slope.

Then construct 95% CI