Nassau County is located approximately 25 miles east of NewYork City. The data organized and stored in GlenCove include the appraised value, land area of the property in acres, and age, in years, for a sample of 30 single-family homes located in Glen Cove, a small city in Nassau County. Develop a multiple linear regression model to predict appraised value based on land area of the property and age, in years.
a. State the multiple regression equation.
b. Interpret the meaning of the slopes, b1 and b2, in this problem.
c. Explain why the regression coefficient, b0, has no practical meaning in the context of this problem.
d. Predict the appraised value for a house that has a land area of 0.25 acres and is 45 years old.
e. Construct a 95% confidence interval estimate for the mean appraised value for houses that have a land area of 0.25 acres and are 45 years old.
f. Construct a 95% prediction interval estimate for the appraised value for an individual house that has a land area of 0.25 acres and is 45 years old.