FILE A realtor examines the factors that influence the price of a house. He collects data on the prices for 36 single-fam ily homes in Arlington, Massachusetts sold in the first quarter of 2009. For explanatory variables, he uses the house's square footage (Sqft), as well as its number of bedrooms (Beds) and bathrooms (Baths). A portion of the data is shown in the accompanying table;

the complete data are found on the text website, labeled Arlington Homes.

Price Sqft Beds Baths 840000 2768 4 3.5 822000 2500 4 2.5 307500 850 1 1 SOURCE: N e w E n g la n d M o v e s .c o m .

a. Estimate the linear model, Price = β 0 + β1 Sqft +

β 2Beds + β 3Baths + ε , and the exponential model, In (Price) = β0 + β1 Sqft + β 2Beds + β 3Baths + ε .

b. Interpret the slope coefficients of the estimated models.

c. Use the coefficient of determination to choose the preferred model.