Example 11.20

EXAMPLE 11.20 Price and the Number of Bedrooms

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CASE 11.3 Figure 11.16 gives a plot of Price versus BedRooms. We see that there appears to be a curved relationship. However, all but two of the homes have either two or three bedrooms. One home has one bedroom and another has four. These two cases are why the relationship appears to be curved. To avoid this situation, we group the four-bedroom home with those that have three bedrooms () and the one-bedroom home with the homes that have two bedrooms.

Figure 11.16: FIGURE 11.16 Plot of price versus the number of bedrooms, Example 11.20.

The price of the four-bedroom home is in the middle of the distribution of the prices for the three-bedroom homes. On the other hand, the one-bedroom home has the lowest price of all the homes in the data set. This observation may require special attention later.