Real estate prices. A regression was performed to predict selling price of houses based on Price in dollars, Area in square feet, Lotsize in square feet, and Age in years. The is 92%. The equation from this regression is given here.

One of the following interpretations is correct. Which is it?

Explain what’s wrong with the others.

a) Each year a house ages, it is worth $6543 less.

b) Every extra square foot of area is associated with an additional

$35.50 in average price, for houses with a given lot size and age.

c) Every additional dollar in price means lot size increases 0.718 square feet.

d) This model fits 92% of the data points exactly.