The following table lists a number of properties in a location popular as a vacation spot that have sold at auction.

1. What factors affect the winning bid?
2. Build a model to predict the winning bid.
3. What is the point prediction for the winning bid for a residential property coming up for auction on July 20, 2011, with an estimated value of $1,500,000?
4. Does this prediction change if there is a lot of interest in the property (that is, many bids are expected)?
5. Does the prediction change if the buyer is expected to be a non-resident?
6. Whatisthe95%predictionintervalforthesamepropertyauction?

Date of Sale Winning Bid Estimated Value Number of Bids received Type of Property Buyer

22-May-10 1,028,885 1,176,800 6 Commercial Nonresident

6-Jun-10 372,455 427,100 4 Residential Resident

13-Jun-10 940,016 1,090,200 7 Residential Resident

29-Jun-10 288,703 336,700 6 Residential Resident

14-Jul-10 2,166,426 2,445,300 7 Residential Nonresident

6-Aug-10 751,420 848,100 4 Commercial Nonresident

13-Aug-10 1,305,550 1,553,500 6 Residential Resident

28-Sep-10 211,412 278,300 9 Residential Resident

5-Oct-10 331,677 385,900 5 Commercial Resident

28-Oct-10 2,749,662 3,074,100 7 Commercial Nonresident

12-Nov-10 1,156,443 1,284,900 5 Commercial Nonresident

28-Nov-10 1,956,165 2,203,100 5 Commercial Resident

5-Dec-10 348,470 431,300 7 Residential Resident

20-Dec-10 1,530,358 1,735,600 7 Commercial Nonresident

5-Jan-11 1,883,154 2,105,300 6 Residential Nonresident

20-Jan-11 393,344 446,100 6 Commercial Nonresident

12-Feb-11 609,573 695,400 6 Commercial Resident

27-Feb-11 4,920,658 5,806,700 9 Residential Resident

6-Mar-11 377,600 472,200 5 Commercial Resident

13-Apr-11 466,776 593,000 5 Residential Resident

29-Apr-11 892,531 1,032,900 3 Commercial Resident

14-May-11 1,025,087 1,146,000 8 Commercial Nonresident

22-May-11 517,964 629,500 7 Commercial Resident