You have purchased the land and lifts of an older ski resort. You are upgrading the lifts and are master planning the real estate development of the ski resort. After studying other resorts you come up with the following (back of the envelope) regression for the sales price per square foot of residential real estate in similar resorts:

P = 300 - 100d - 20F

Where d is distance in miles to the lifts and F is FAR. You ascertain that construction costs will be 140 per square foot regardless of FAR.

Given:

*FAR = Floor Area Ratio

. An Optimal FAR Gradient would have the following Optimal Density Equation: F = 160-100(3.5878-8) 20