Analyze the real estate data in Table 15.14 and make recommendations to a real estate developer about where to build and what type of house to build for profitability. A good analysis will typically include one or two models, reasons for selecting that model, estimates of the errors of the model, and interpretation of everything for the layperson. (Note that this question is intentionally openended because that is the way problems are on-the-job).

Feel free to supplement with additional real data.