Florida reappraises real estate every year, and the county appraiser’s Web site lists the current

Florida reappraises real estate every year, and the county appraiser’s Web site lists the current “fair market value” of each piece of property. Property usually sells for somewhat more than the appraised market value. Here are the appraised market values and actual selling prices of condominium units sold in a beachfront building over a 19-month period (in thousands of dollars):

Selling Price	Appraised value	Month	Selling price	Appraised value	Month
850	758	0	790	605.9	13
900	812.7	1	700	483.8	14
625	504	2	715	585.8	14
1075	956.7	2	825	707.6	14
890	747.9	8	675	493.9	17
810	717.7	8	1050	802.6	17
650	576.6	9	1325	1031.8	18
845	648.3	12	845	586.7	19

(a) Make a scatterplot. It appears that appraised market value can be used to predict selling price.

(b) Find the least-squares line for predicting selling price from appraised value. Add this line to your scatterplot. Another unit in this building has appraised value $802,600. What do you predict that it will sell for?

question.docx

11 years ago

Report issue

Florida reappraises real estate every year, and the county appraiser’s Web site lists the current

NOT RATED

Purchase the answer to view it

solution.docx