A realtor collects the data set given in DS 12.2.4 concerning the sizes of a random selection of newly constructed houses in a certain area together with their appraised values for tax purposes. 1. Fit a linear regression model with appraised value as the explanatory variable and size as the dependent variable.
2. What is the estimate of the error variance?
A B
Area (square feet) Appraised Value ($1000)
1380 76
3120 216
3520 238
1130 69
1030 50
1720 119
3920 282
1490 81
1860 132
3430 228
2000 145
3660 251
2500 170
1220 71
1390 29