10 May Economic
For a given year (a recent year) find data on average income and average price (in thousands) of houses sold for fifteen towns (fifteen observations) around metropolitan Boston or New York City.
a. Report the data (show as a table). Calculate by applying the formulas, expected value of sales in the area, its standard deviation and upper and lower bounds within 95% of confidence interval. Show and Interpret results.
b. Also show, for one of the variables, the probability distribution–density function–(with a graph) after rearranging the data for average price from lowest to highest and dividing the range into five equal sections. Interpret results.
c. Consider a model with these two variables (cause and effect) and run a regression. Report the estimated function and interpret the estimated coefficients (please attach the computer printout).
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