The 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:

Price ($)	Type	Square Feet	Price ($)	Type	Square Feet
199,700	Family	1,500	200,600	Condo	1,375
211,800	Condo	2,085	208,000	Condo	1,825
197,100	Family	1,450	210,500	Family	1,650
228,400	Family	1,836	233,300	Family	1,960
215,800	Family	1,730	187,200	Condo	1,360
190,900	Condo	1,726	185,200	Condo	1,200
312,200	Family	2,300	284,100	Family	2,000
313,600	Condo	1,650	207,200	Family	1,755
239,000	Family	1,950	258,200	Family	1,850
184,400	Condo	1,545	203,100	Family	1,630

a. Produce a regression equation to predict the selling price for residences using a model if the following form:

y₁ = ?₀ + ?₁x₁ + ?₂x₂ + ?

where:

x₁ = Square footage and x₂ = {1 if a condo, 0 if a single-family home

b. Interpret the parameters ?₁ and ?₂ in the model given in part a.

c. Produce an equation that describes the relationship between the selling price and the square footage of (1) condominiums and (2) single-family homes.

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.

(PLEASE SHOW ALL WORK.)