Sales price versus assessed value, continued. Refer to the

QUESTION:

Sales price versus assessed value, continued. Refer to the previous exercise. Lets consider the model fit with Property 11 excluded. SALES (a) Calculate the predicted sales prices for homes currently assessed at $155,000, $220,000, and $285,000. (b) Construct a 95% confidence interval for the slope and explain what this model tells you in terms of the relationship between assessed value and sales price. (c) Explain why inference on the intercept is not of interest. (d) Using the result from part (b), compare the estimated regression line with y x, which says that, on average, the sales price is equal to the assessed value. Is there evidence that this model is not reasonable? In other words, is the sales price typically larger or smaller than the assessed value? Explain your answer.