A Realtor Collected the Following Data for a Random Sample

question 73

Essay

A realtor collected the following data for a random sample of ten homes that recently sold in her area. $$\begin{array} { | c | c | c | } \hline \text { House } & \text { Asking Price } & \text { Days on Market } \\\hline \text { A } & \$ 114,500 & 29 \\\hline \text { B } & \$ 149,900 & 16 \\\hline \text { C } & \$ 154,700 & 59 \\\hline \text { D } & \$ 159,900 & 42 \\\hline \text { E } & \$ 160,000 & 72 \\\hline \text { F } & \$ 165,900 & 45 \\\hline \text { G } & \$ 169,700 & 12 \\\hline \text { H } & \$ 171,900 & 39 \\\hline \text { I } & \$ 175,000 & 81 \\\hline \text { J } & \$ 289,900 & 121 \\\hline\end{array}$$ a. Construct a scattergram for the data. b. Find the least squares line for the data and plot the line on your scattergram. c. Test whether the number of days on the market, y, is positively linearly related to the asking price, x. Use α = .05.

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Definitions:

Customer Demand

The desire and willingness of consumers to purchase goods and services at given prices.

Inventory Turnover

A ratio that measures how often a company sells and replaces its stock of goods within a certain period, indicating efficiency in inventory management.

Average Inventory

The average value of a company's inventory over a specific period, calculated by adding the beginning and ending inventory and dividing by two.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated before the next period's beginning.