The following table provides information on the living area (in square feet) and price (in thousands of dollars) of 10 randomly selected houses listed for sale in a city.

a. Find the least squares regression line Å· = a + bx. Take living area as an independent variable and price as a dependent variable.
b. Give a brief interpretation of the values of a and b.
c. Compute r and r2 and explain what they mean.
d. Predict the price of a house with 2700 square feet of living area.
e. Compute the standard deviation of errors.
f. Construct a 99% confidence interval for B.
g. Testing at a 1% significance level, can you conclude that B is different from zero?
h. Using α = .01, can you conclude that the correlation coefficient is different from zero?

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Living area 3008 2032 2272 1840 2579 2583 1650 3932 2978 2176 Price 275 220 255 189 260 84172 370 295 260