Construct a scatter diagram showing the relationship between sales price and lot cost. Does there appear to be a linear relationship?

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A national home builder builds single‐family homes and condominium‐style townhouses. The Excel file House Sales provides information on the selling price, lot cost, type of home, and region of the country (M = Midwest, S = South) for closings during one month. a. Construct a scatter diagram showing the relationship between sales price and lot cost. Does there appear to be a linear relationship? Compute the correlation coefficient. b. Construct scatter diagrams showing the relationship between sales price and lot cost for each region. Do linear relationships appear to exist? Compute the correlation coefficients. c. Construct scatter diagrams showing the relationship between sales price and lot cost for each type of house. Do linear relationships appear to exist? Compute the correlation coefficients.

 

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