Real estate is typically reassessed annually for property tax purposes.
QUESTION:
Real estate is typically reassessed annually for property tax purposes. This assessed value, however, is not necessarily the same as the fair market value of the property. Table 10.2 summarizes an SRS of 30 properties recently sold in a midwestern city. Both variables are measured in thousands of dollars.
|
TABLE
|
Sales Price and Assessed Value (in $ thousands) of 30 Homes in a Midwestern City
|
|
Property
|
Sales price
|
Assessed value
|
Property
|
Sales price
|
Assessed value
|
Property
|
Sales price
|
Assessed value
|
|
1
|
179.9
|
188.7
|
2
|
240.0
|
220.4
|
3
|
113.5
|
118.1
|
|
4
|
281.5
|
232.4
|
5
|
186.0
|
188.1
|
6
|
275.0
|
240.1
|
|
7
|
281.5
|
232.4
|
8
|
210.0
|
211.8
|
9
|
210.0
|
168.0
|
|
10
|
184.0
|
180.3
|
11
|
186.5
|
294.7
|
12
|
239.0
|
209.2
|
|
13
|
185.0
|
162.3
|
14
|
251.0
|
236.8
|
15
|
180.0
|
123.7
|
|
16
|
160.0
|
191.7
|
17
|
255.0
|
245.6
|
18
|
220.0
|
219.3
|
|
19
|
160.0
|
181.6
|
20
|
200.0
|
177.4
|
21
|
265.0
|
307.2
|
|
22
|
190.0
|
229.7
|
23
|
150.5
|
168.9
|
24
|
189.0
|
194.4
|
|
25
|
157.0
|
143.9
|
26
|
171.5
|
201.4
|
27
|
157.0
|
143.9
|
|
28
|
175.0
|
181.0
|
29
|
159.0
|
125.1
|
30
|
229.0
|
195.3
|
Data File
Find the least-squares regression line for predicting selling price from assessed value.
(Fill in the blanks below and round your answers to whole numbers.)
Calculate the predicted selling price for a home currently assessed at $285000.