Question: The sales manager at Sun City Real Estate Company in Tempe, AZ is interested in seeing what relationship, if any, exists between the number of weeks a low-end condo is on the market and its selling price. In particular, his research question is “Does ‘weeks on the market’ predict ‘selling price’ “? He collected a random sample of 14 low-end condos that have sold within the past three months in the Tempe area and analyzed the data using simple regression analysis. Answer the questions that follow.

a. What is the independent variable, x?

b. What is the dependent variable, y?

c. Calculate the r² value, the coefficient of determination.

d. Should the r-value be positive or negative? What in the output tells you this?

e. Based on the correlation coefficient, does there appear to be a strong correlation between x and y? Is it a positive or negative relationship?

f. What is the regression equation?

g. If a house was on the market for 10 weeks, what would be its predicted selling price?

h. If a house sold for $77,000, approximately how many weeks was it on the market?

i. What is the residual for the 1^st x-observation in the raw data set, which was 23 weeks?

j. What is the predicted selling price for the 4^th x-observation in the raw data set, which was 26 weeks?

k. Should this regression equation be used to predict the selling price for high-end condos? Why or why not?