3-21. The cost of building a supermarket is related to the total area of the building. Data for the last 10 supermarkets built for Regork, Inc., are shown in the accompanying table. Building Area (ft2) Cost ($) 1 14,500 800,000 2 15,000 825,000 3 17,000 875,000 4 18,500 972,000 5 20,400 1,074,000 6 21,000 1,250,000 7 25,000 1,307,000 8 26,750 1,534,000 9 28,000 1,475,500 10 30,000 1,525,000

a. Develop a CER for the construction of supermarkets. Use the CER to estimate the cost of Regork’s next store, which has a planned area of 23,000 square feet. (3.4)

b. Compute the standard error and correlation coefficient for the CER developed in Part (a). (3.4)