EXAMPLE 11.17 Price and Square Feet

CASE 11.3 The HOMES data set contains 44 homes for sale in zip code 47904. We focus on this subset. Preliminary examination of Price reveals that a few homes have prices that are somewhat high relative to the others. Similarly, some values for SqFt are relatively high. Because we do not want our analysis to be overly influenced by these homes, we exclude any home with Price greater than $150,000 and any home with SqFt greater than 1800 ft². Seven homes were excluded by these criteria.

Figure 11.13 displays the relationship between SqFt and Price. We have added a "smooth’’ fit to help us see the pattern. The relationship is approximately linear but curves up somewhat for the higher-priced homes.