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):
(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?
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