Table 8.18 consists of data that has been collected by an estate agent who wishes to model the relationship between house sales price (£) and the independent variables: land value, LV (£) and the value of home improvements, IV (£).

In order to fit the model the estate agent selected a random sample of size 20 properties from the 2000 properties sold in that year (Table 8.18).

Transcribed Image Text:

Selling price (£), Y 68900 48500 55500 62000 140000 45000 115000 144000 59000 47500 40500 40000 135800 45500 40900 80000 56000 37000 50000 22400 Table 8.18 Land value (£), X, 5960 9000 9500 10000 18000 8500 15000 23000 8100 9000 7300 8000 20000 8000 8000 10500 4000 4500 3400 1500 Home improvements (£), X₂ 44967 27860 31439 39592 72827 27317 60000 65000 39117 29349 40166 31679 75000 23454 20897 56248 20859 22610 35948 5779