The accompanying data on sale price (thousands of dollars), size (thousands of sq. ft.), and land-to-building ratio for 10 large industrial properties appeared in the paper “Using Multiple Regression Analysis in Real Estate Appraisal” (Appraisal J. 2001: 424–430).

a. Use software to create an estimated multiple regression equation for predicting the sale price of a property from its size and land-to-building ratio.
b. Interpret the estimated regression coefficients in this example.
c. Based on the data, what is the predicted sale price for a 500,000 ft.² industrial property with a land-to-building ratio of 4.0?

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Price Size 10600 2167 2625 752 10500 2423 1850 225 20000 3918 L/B ratio 2.011 3.543 3.632 4.653 1.712 Price Size 8000 2867 10000 1698 6670 1046 5825 1109 4517 405 L/B ratio 2.279 3.123 4.771 7.569 17.190