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A real estate agent working in a large city believes that, for three-bedroom houses, the selling price of the house decreases by approximately $2,000 for
A real estate agent working in a large city believes that, for three-bedroom houses, the selling price of the house decreases by approximately $2,000 for every mile increase in the distance of the house from the city center. To investigate the belief, the agent obtained a random sample of 20 three-bedroom houses that sold in the last year. The selling price, in thousands of dollars, and the distance from the city center, in miles, for each of the 20 houses are shown in the scatterplot. The table shows computer output from a regression analysis of the data. The figure presents a scatterplot. The horizontal axis is labeled "Distance from City Center, in miles," and the numbers 0 through 25, in increments of 5, are indicated. The vertical axis is labeled "Selling Price, in thousands," and the values $250 through $310, in increments of $10, are indicated. There are 20 data points in the scatterplot. The data points begin in the top left part of the plane at the point with approximate coordinates 2 comma 305. The data points trend downward and to the right until they end in the lower right part of the plane at the point with approximate coordinates 24 comma 255. Predictor Coef SE Coef T P Constant 301.7 1.80 167.17 0.000 Distance 2.158 0.149 14.45 0.000 S=4.4336 R-sq=92.1% (a) Assume all conditions for inference are met. Construct and interpret a 95 percent confidence interval for the slope of the least-squares regression line. (b) Does the confidence interval contradict the agent's belief about the relationship between selling price and distance from the city center? Justify your
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