A real estate agent would like to know if the number of bedroomsin a house can be used to predict the selling price of the house.More specifically, she wants to know whether a larger number ofbedrooms leads to a higher selling price. Records for 25 housesthat recently sold in the area were selected at random, and data onthe number of bedrooms (x) and the selling price (y) (in $000s) foreach house were used to fit the model E(y) = β0 + β1x.
The value of the test statistic for testing β1 is 11.3383 andthe corresponding standard error is 1.29384. What is the linearrelationship between bedrooms and the selling price?
