A real estate agent wishes to determine the selling price of residences using

the size (square feet), and whether the residence is a condominium or a

single-family home. A sample of 20 residences was obtained with the

following results:

x 233 10 24 56 78 102 90 200 344 120 y 245 12 22 56 90 103 85 190 320 120 Price ($) Type Square Feet

199,700 F 1,500

211,800 C 2,085

197,100 F 1,450

228,400 F 1,836

215,800 F 1,730

190,900 C 1,726

312,200 F 2,300

313,600 C 1,650

239,000 F 1,950

184,400 C 1,545

200,600 C 1,375

208,000 C 1,825

210,500 F 1,650

233,300 F 1,960

187,200 C 1,360

185,200 C 1,200

284,100 F 2,000

207,200 F 1,755

258,200 F 1,850

203,100 F 1,630

F: Single-Family Home

C: Condomnium Residence

a. Produce a regression equation to predict the selling price for residences

using a model of the following form: (2 marks)

Where,

b. Interpret the parameters 1, and 2 in the model given in part a. (2 marks)

c. Produce an equation that describes the relationship between the selling

price and the square footage of (1) condominiums and (2) single-family

homes. (3 marks)

d. Conduct a test of hypothesis to determine if the relationship between the

selling price and the square footage is different between condominiums

and single-family homes. (3 marks)