"City Assessments Found Out of Line" reported that "a private study of 2,500 property sales in 2004 shows the prices to be widely different from the assessed values for the properties developed by the county. The comparison [...] found many properties were substantially underassessed or overassessed."10 Suppose sale price is regressed on assessed price.
a. Based on what the article is suggesting, would the value of r be closer to 1, closer to 0, or closer to 1?
b. Would the value of s be relatively large (close to the standard deviation of sale prices) or relatively small (close to zero)?
c. If a 95% confidence interval for the population slope b1 contained zero, what would we conclude?