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Question: A real estate agent wishes to determine the selling price of residences using the size (square feet) and whether the residence is a condominium or a single family home. A sample of 20 residences was obtained with the following results:
a. Produce a regression equation to predict the selling price for residences using a model of the following form:
b. Interpret the parameters β1 and β2 in the model given in part a.
c. Produce an equation that describes the relationship between the selling price and the square footage of (1) condominiums and (2) single-family homes.
d. Conduct a test of hypothesis to determine if the relationship between the selling price and the square footage is different between condominiums and single-family homes.
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