You want to develop a model to predict the selling price of homes based on assessed value. A sample of 30 recently sold single-family houses in a small city is selected to study the relationship between selling price (in thousands of dollars) and assessed value (in thousands of dollars). The houses in the city were reassessed at full value one year prior to the study. The results are in House 1.

(hint: first determine which are the independent and dependent variables.)

1. Construct a scatter plot and, assuming a linear relationship, use the least-squares method to compute the regression coefficients bo and b1.
2. Interpret the meaning of the y intercept, bo, and the slope, b1, in this problem.
3. Use the prediction line developed in (a) to predict the selling price for a house whose assessed value is $170,000.
4. Determine the coefficient of determination, r2, and interpret its meaning in this problem.
5. Performaresidualanalysisonyourresultsandevaluatetheregressionassumptions.
6. I need help answering all of the above questions as well as creating the scatterplot.