Question

The Sales Manager at City Real Estate Company is interested in describing the relationship between condo sales prices and the number of weeks the condo is on the market before its sells. He has collected a random sample of 17 low end condos that have sold within the past three months. These data are as follows:

Weeks on the Market	Selling Price
23	$                76,500.00
48	$             102,000.00
9	$                53,000.00
26	$                84,200.00
20	$                73,000.00
40	$             125,000.00
51	$             109,000.00
18	$                60,000.00
25	$                87,000.00
62	$                94,000.00
33	$                76,000.00
11	$                90,000.00
15	$                61,000.00
26	$                86,000.00
27	$                70,000.00
56	$             133,000.00
12	$                93,000.00

1. Develop a simple linear regression model to explain the variation in selling price based on the number of weeks the condo is on the market.
2. Test to determine whether the regression slope coefficient is significantly different from 0 using a significance level equal to 0.05.
3. Construct and intrepret a 95% confidence interval estimate for the regression slope coefficient.

Answer 1

Develop a simple linear regression model to explain the variation in selling price based on the number of weeks the condo is on the market.

y = 943.58x + 58766

st to determine whether the regression slope coefficient is significantly different from 0 using a significance level equal to 0.05.

Construct and interpret a 95% confidence interval estimate for the regression slope coefficient.