Answer :
Answer:
the house was sold for 16,232 more than the expected based on the regression line
Explanation:
First, we determine know that the regression line for prediction of selling prices of homes in Chicago
y^ = 168 + 102x
No we extract the information required for the question as follows
1) The house has a square feet of 1800
2) The house was recently sold for $200,000
Therefore, based on the information and the predicting regression line
y^ = 168 + 102x
= y^ = 168 + 102 (1800)
y^ = 168 + $183,600
y^ = 183,768
Since observed value for 1800 square foot is y=$200,000
Residual is = 183,768 - 200,000
=-16,232
the house was sold for 16,232 more than the expected based on the regression line