Answer
The asking price of the given home is above average.
There are many possible reasons for this price:
- The home is really better than the others with the same square footage.
- The home is well located (close to the beach, for example).
- The seller is trying to make a good deal, so he/she put a price higher than expected to start the deal.
Work Step by Step
Use the least-squares regression line found in part (e) and make $x=1092$:
$ŷ =0.0868x+83.237$
$ŷ =0.0868\times1092+83.237$
$ŷ=158.1482$
That is, for a 1092 square foot home in Naples, Florida, in December 2010, the average asking price is $158,148.20.
We can conclude that the asking price of the given home is above average.
