Quiz 8 Solutions

Quiz 8 Solutions - BA 240 Spring 2008 W. Li 06/03/2008 QUIZ...

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BA 240 Spring 2008 W. Li 06/03/2008 QUIZ 8 Solution Problem 1 : A Florida real estate appraisal company regularly employs a paired sales technique to evaluate land sales. When two parcels of land are sold, the ratio of the acreage of the larger parcel to the smaller parcel is calculated as well as the difference in sale prices (measured as a percentage of the higher sale price and called a downward adjustment). The variables land sale ratio x (in %) and downward price adjustment y (in Thousands of dollars) were measured for a random sample of 14 pairs of land sales in Seminole County, Florida as followings: a) Write down the model, and find the y-intercept and the slope .(4 points) Model: x y 1 0 where y is the downward price adjustment and x is the land sale ratio.   371 . 0 14 9 . 554 25 . 43487 14 567 9 . 554 2 . 30447 2 2 2 1   n x x n y x xy b 796 . 25 14 9 . 554 371 . 0 14
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This note was uploaded on 05/15/2011 for the course BA 240 taught by Professor Li during the Spring '08 term at Bellevue College.

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