12.44 Housing Prices If you try to rent an apartment or buy a house, you find that real estate representatives establish apartment rents and house prices on the basis of square footage of heated floor space. The data in the table give the square footages and sales prices of n = 12 houses randomly selected from those sold in a small city. Use the MINITAB printout to answer the questions.

a. Can you see any pattern other than a linear relationship in the original plot?

b. The value of for these data is 0.957. What does this tell you about the fit of the regression line?

c. Look at the accompanying diagnostic plots for these data. Do you see any pattern in the residuals? Does this suggest that the relationship between price and square metres is something other than linear?

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Square Metre (x) Price (y) Square Metre (x) Price (y) 135.6 $188,700 183.7 $205,400 195.9 209,300 149.6 197,000 161.9 201,400 142.2 192,400 139.3 191,100 163.4 198,200 173.2 202,400 169.2 204,300 222.1 214,900 205.9 211,700 Plot of data for Exercise 12.44 (Price) 215000- 210000 205000- 20000 195000- 190000- 140 150 160 170 180 190 206 210 220 230 x (Square metre)