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Question: The housing market in the United States saw a major decrease in value between 2007 and 2008. The file titled House contains the data on average and median housing prices between November 2007 and November 2008. Assume the data can be viewed as samples of the relevant populations.
a. Determine the linear relationship that could be used to predict the average selling prices for November 2007 using the median selling prices for that period.
b. Conduct a hypothesis test to determine if the median selling prices for November 2007 could be used to determine the average selling prices in that period. Use a significance level of 0.05 and the p-value approach to conduct the test.
c. Provide an interval estimate of the average selling price of homes in November 2007 if the median selling price was $195,000. Use a 90% confidence interval.
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