Concept explainers
a.
Find a model for the relationship between sales price and the number of apartment units as three parallel lines, one for each level of physical condition.
b.
Plot the graph of the data.
Check whether the model is appropriate or not. Explain the answer.
c.
Fit the model in Part (a).
Find the least squares prediction equation for each of the three building condition levels.
d.
Plot the least squares prediction equations of Part (c).
e.
Test whether the relationship between sales price and the number of units differs depending on the physical condition of the apartments or not.
f.
Check whether there is multicollinearity or not.
Explain how the result affects the choice of independent variables in the model.
g.
Conduct a complete residual analysis of the model to check the assumptions on
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