Recently sold, single-family homes. The

QUESTION:

Recently sold, single-family homes. The NationalAssociation of Realtors maintains a database consisting of sales information on homes sold in the United States. The Next table lists the sale prices for a sample of 28 recently sold, single-family homes. The table also identifies the region of the country in which the home is located and the total number of homes sold in the region during the month the home sold.

a. Propose a complete second-order model for the sale price of a single-family home as a function of region and sales volume.

b. Give the equation of the curve relating sale price to sales volume for homes sold in the West.

c. Repeat part b for homes sold in the Northwest.

d. Which \(\beta\)’s in the model, part a, allow for differences among the mean sale prices for homes in the four regions?

e. Fit the model, part a, to the data using an available statistical software package. Is the model statistically useful for predicting sale price? Test using \(\alpha\ =\ .01\).