Hanna Properties, Inc. specializes in custom home resales in Equestrian Estates. A random sample of 8 currently listed homes provided the following information on size of home and the price of the home.  The size data are in hundreds of square feet, rounded to the nearest hundred, and the price data are in thousands of dollars, rounded to the nearest thousand. Size (X) Price (Y) 26 235 27 249 33 267 29 269 34 345 30 415 40 475 22 195  a) Compute the regression equation for price in terms of size. b)  Interpret the meaning of the regression parameters. c) Compute r and r2.  Interpret these statistics d) Based upon the model above, what would be the predicted sales price of a home that is 3100 square feet?

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.