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The following data on sale price, size, and landto-building ratio for 10 large industrial properties appeared in the paper "Using Multiple Regression
Analysis in Real Estate Appraisal" (Appraisal Journal [2002]: 424-430):
a. Calculate and interpret the value of the correlation coefficient between sale price and size.
b. Calculate and interpret the value of the correlation coefficient between sale price and land-to-building ratio.
c. If you wanted to predict sale price and you could use either size or land-to-building ratio as the basis for making predictions, which would you use? Explain.
d. Based on your choice in Part (c), find the equation of the least-squares regression line you would use for predicting y 5 sale price.
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