In Chapter 6 the analysis of variance was used to show that home prices differed among the zip areas, while in Chapter 8 multiple regression was used to show than home size was the most important factor affecting home prices.
(a) Using the data in Table 1.2 analyze home prices $200,000 or less with the general linear model using zip as a categorical variable and size, bed, and bath as continuous variables. Does this analysis change any previously stated conclusions?
(b) Using the data in Table 1.2 analyze the data using a model with all variables in the data set. Write a short report stating all relevant conclusions and how the Modes may use the analyses for making decisions about their impending move and subsequent home buying.
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