13.8. Refer to the previous exercise. Table 13.15 shows results of fitting the model allowing interaction, where new^size refers to the cross-product term.

(a) Report the lines relating predicted selling price to size for homes that arc (i) new, (ii)

not new.

(b) Find the predicted selling price for a home of 3000 square feet that is (i) new, (ii) not new.

(c) Find the predicted selling price for a home of 1500 square feet that is (i) new, (ii) not new.

Comparing to (b), explain how the difference in predicted selling prices changes as size of home increases.

TABLE 13.15 Parameter B Std. Error t Sig Intercept -22227.,808 15521..110 -1,,432 .155 size 104.,438 9..424 11,,082 .000 new -78527.,502 51007,,642 -1.,540 .127 new*size 61.,916 21,,686 2..855 .005