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

Required:
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?