FILE A realtor in Arlington, Massachusetts, is analyzing the relationship between the sale price of a hom e (Price), its square footage (Sqft), the number of bedrooms (Beds), and the number of bathrooms (Baths). She collects data on 36 recent sales in Arlington in the first quarter of 2009 for the analysis. A portion of the data is shown below; the complete data set can be 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: Newenglandmoves.com.

She estimates the model as Price = β0 + β 1 Sqft + β 2 Beds +

β 3Baths + ε and obtains the following output.

Coefficients Standard Error t Stat p-value Intercept 153348.27 57141.79 2.6836 0.0114 Sqft 95.86 35.40 2.7078 0.0108 Beds 556.89 20280.31 0.0275 0.9783 Baths 92022.91 25012.30 3.6791 0.0009

a. Replicate the above regression output.

b. Interpret the slope coefficients.

c. Predict the price of a 2,500 square-foot hom e with three bedrooms and two bathrooms.