Question: A real estate agency collects the data displayed in the table below concerning:

y: Sales price of a house (in thousands of dollars)

x₁: Home size (in hundreds of square feet)

x₂: Rating on a scale from 1 (worst) to 10 (best), and provided by the real estate agency.

a) Produce the scatter plots or matrix plot, and interpret the possible relations between all variables.

b) Solve the first-order model, i.e., y = ?₀ +??₁x₁ +?? ₂x₂ +?. By setting ?=0.05, is the model appropriate? Are the predictors significant?

c) Suppose that you want to buy a house, and you have found one having 2000 square feet and a rating of 8. If the price of this house were $178,000, would you buy it? Explain.