Use the following to answer the questions below:
A quantitatively savvy, young couple is interested in purchasing a home in northern New York. They collected data on 48 houses that had recently sold in the area. They want to predict the selling price of homes (in thousands of dollars) based on the size of the home (in square feet).
The regression equation is Price (in thousands) = 17.1 + 0.0643 Size (sq. ft.)

-Using the scatterplot, should we have any serious concerns about the conditions being met for using a linear model with these data.

Question

Use the following to answer the questions below:
A quantitatively savvy, young couple is interested in purchasing a home in northern New York. They collected data on 48 houses that had recently sold in the area. They want to predict the selling price of homes (in thousands of dollars) based on the size of the home (in square feet). 
The regression equation is Price (in thousands) = 17.1 + 0.0643 Size (sq. ft.)
 
-Using the scatterplot, should we have any serious concerns about the conditions being met for using a linear model with these data.

Quizplus · Accepted Answer

There should be no serious concerns. There is no curved pattern and no fanning of the data.

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