1. Copyright © 2012 Pearson Education, Inc. All rights reserved. Case Study 2 Modeling the Sale Prices of Residential Properties in Four Neighborhoods

2. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 2 Figure CS2.1 The theoretical relationship between mean sale price and appraised value x

3. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 3 Figure CS2.2 MINITAB scatterplot of sales-appraisal data

4. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 4

5. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 5 Figure CS2.3 SAS regression output for Model 1

6. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 6 Figure CS2.4 SAS regression output for Model 2

7. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 7 Figure CS2.5 SAS regression output for Model 3

8. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 8 Figure CS2.6 SAS regression output for Model 4

9. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 9 Figure CS2.7 Portion of SAS regression output for Model 5

10. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 10

11. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 11

12. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 12 Figure CS2.8 SAS graph of predictable sales for land value of $150,000

13. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 13 Figure CS2.9 SAS descriptive statistics, by neighborhood

14. Copyright © 2012 Pearson Education, Inc. All rights reserved. 4- 14 Figure CS2.10 SAS printout showing 95% prediction intervals for sale price