Which statistical method is used to show the average sale price per square foot by construction grade and neighborhood?

The statistical method that effectively shows the average sale price per square foot by construction grade and neighborhood is cross tabulation. Cross tabulation allows data to be presented in a matrix format, where you can compare two or more categorical variables. In this scenario, it enables the assessment of how sale prices vary in relation to different construction grades and neighborhoods, facilitating a clear view of patterns and averages across these categories.

Cross tabulation helps to highlight the relationship between the two variables—construction grade and neighborhood—by organizing the data in a manageable way that makes it easier to analyze and interpret. On the other hand, contingency tables are used to summarize the relationship between two or more categorical variables as well, but they do not explicitly highlight averages like cross tabulation does. Therefore, while they may seem related, they serve different purposes in data analysis.

The other options, such as present worth of $1 and scatter diagrams, focus on different types of analysis. Present worth is more related to financial calculations, while scatter diagrams primarily depict the relationship between two quantitative variables, offering insights into correlations rather than categorical breakdowns like average prices per square foot based on construction grade and neighborhood. Thus, cross tabulation stands out as the most applicable method for the analysis described in the question