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A councellor in a new residential area of outer Western Sydney, is reviewing apartment floor areas and sale prices to determine if he could estimate

A councellor in a new residential area of outer Western Sydney, is reviewing apartment floor areas and sale prices to determine if he could estimate the sale price from the apartment floor area. The following data was collected for a sample of 10 recent sales of apartments.

Area (m2)

460

500

540

540

580

610

620

680

730

790

Price ($'000s)

230

236

242

246

200

250

256

262

250

274

You may use the following Excel print-out to answer the questions.

Regression Statistics

Descriptive Statistics

Multiple R

0.630

n =

10

R Square

0.397

605

Adjusted R Square

0.322

244.6

Standard Error

16.566

10761.111

Observations

10

404.489

1314.444

Coeff

Stand Error

t Stat

P-value

Intercept

170.701

32.628

5.232

0.001

Area (m)

0.122

0.053

2.295

0.051

i) What is the equation of the regression line to predict Sale Price from floor area?

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