More real estate.
Consider the Albuquerque home sales from Exercise 15 again. The regression analysis gives the model price^ = 47.82 + 0.061 Size.
a) Explain what the slope of the line says about housing prices and house size.
b) What price would you predict for a 3000-square-foot house in this market?
c) A real estate agent shows a potential buyer a 1200- square-foot home, saying that the asking price is $6000 less than what one would expect to pay for a house of this size. What is the asking price, and what is the $6000 called?