Question

A house is listed for sale at $235,000, but the listing does not include square

footage of the house. Based on the comps, the line of best fit is
y=0.06x + 60.5. If the price is fair, what size (in square feet) should the house
be?

A. 2850 ft^2
B. 2900 ft^2
C. 20,000 ft^2
D. 2350 ft^2

Answer 1

Option B.

Explanation:

If the cost of the house (y) is in thousands and area of the house is x ft².

Cost of the house is modeled by the equation given,

y = 0.06x + 60.5

By substituting the values in the line of best fit,

235 = 0.06x + 60.5

0.06x = 235 - 60.5

0.06x = 174.5

x =
`(174.5)/(0.06)`

x = 2908.33 ft²

x ≈ 2900 ft²

Therefore, Option B will be the correct answer.