Decision analyst Sandy Baron has taken a job with an up- and-coming consulting firm in San Francisco. As part of the move, Sandy will purchase a…

Decision analyst Sandy Baron has taken a job with an up- and-coming consulting firm in San Francisco. As part of the move, Sandy will purchase a house in the area. There are two houses that are especially attractive, but their prices seem high. To study the sit- uation a bit more, Sandy obtained data on 30 recent real-estate transactions involving properties roughly similar to the two candi- dates. The data are shown in Table 10.12. The Attractiveness Index measure is a score based on several aspects of a property’s charac- ter, including overall condition and features (e.g., swimming pool, view, seclusion).

Table 10.12

a. Run a regression analysis on the data in Table 10.12 . only perform a single variable analysis using Sale price as dependent variable and House Size as the independent variable.

b. The two properties that Sandy is considering are as follows:

What is the expected Sale Price for the house size according to the regression analysis from part a?

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