Chapter 12.8, Problem 12.95ACI

Recently sold, single-family homes. The National Association 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.

Home Price	Region	Sales Volume
$218,200	NE	55,156
235,900	NE	61,025
192,888	NE	48,991
200,99	NE	55,156
345,300	NE	60,324
178,999	NE	51,446
240,855	NW	61,025
183,200	NW	94,166
165,225	NW	92,063
160,633	NW	89,485
173,900	NW	91,772
241,000	NW	99,025
188,950	NW	94,166
192,880	NW	95 688
193,000	S	155,666
211,980	S	160,000
179,500	s	153,540
185,650	s	148,668
250,900	s	163,210
190,990	s	141,822
242,790	s	163,611
258,900	w	109,083
202 420	w	101,111
365,900	w	116 983
219,900	w	108,773
228,250	w	105,106
235,300	w	107,839
269,800	w	109,026

1. a. Propose a complete second-order model for the sale price of a single-family home as a function of region and sales volume.
2. b. Give the equation of the curve relating sale price to sales volume for homes sold in the West.
3. c. Repeat part b for homes sold in the Northwest.
4. d. Which β’s in the model, part a, allow for differences among the mean sale prices for homes in the four regions?
5. 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 α =.01 .