14-15 7 A realtor in Arlington, Massachusetts, is analyzing the relationship between the sale price of a home (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. The data is shown in the accompanying table. Price 840000 822000 713000 689000 685000 645000 625000 620000 587500 585000 583000 569000 546000 540000 537000 516000 511000 510000 495000 463000 457000 451000 435000 431700 414000 401500 399000 380000 380000 375900 372000 367500 356500 330000 330000 307500 Sqf 2768 2500 2400 2200 2716 2524 2732 2436 2100 1947 2224 3262 1792 1488 2907 1951 1752 1727 1692 1714 1650 1685 1500 1896 1182 1152 1383 1344 1272 2275 1005 1272 1431 1362 1465 850 Beds 4 4 3 3 3 3 4 4 3 3 3 4 3 3 3 4 3 3 3 3 3 3 3 2 2 3 4 4 3 5 2 3 2 3 3 1 Baths 3.5 2.5 3 2.5 3.5 2 2.5 3.5 1.5 1.5 2.5 2 2 1.5 2.5 2 1.5 2 2 2 2 2 1.5 1.5 1.5 1 1 2 1 1 1 1 2 1 1 1 a. Estimate the model Price = 0 + 1Sqft + 2Beds + 3Baths + . Intercept Sqf Beds Baths b-1. Coefficients _______ _______ _______ _______ Interpret the coefficient of sqf. For every additional square foot, the predicted price of a home increases by $95.86, holding number of bedrooms and bathrooms constant. For every additional square foot, the predicted price of a home increases by $95.86. For every additional square foot, the predicted price of a home increases by $95.86, holding square foot, number of bedrooms and bathrooms constant. b-2. Interpret the coefficient of beds. For every additional bedroom, the predicted price of a home increases by $556.89. For every additional bedroom, the predicted price of a home increases by $556.89, holding number of square feet and bathrooms constant. For every additional bedroom, the predicted price of a home increases by $556.89, holding square foot, number of bedrooms and bathrooms constant. b-3. Interpret the coefficient of baths. For every additional bathroom, the predicted price of a home increases by $92,022.91. For every additional bathroom, the predicted price of a home increases by $92,022.91, holding number of square feet and bedrooms constant. For every additional bathroom, the predicted price of a home increases by $92,022.91, holding square foot, number of bedrooms and bathrooms constant. c. Predict the price of a 2,500 square-foot home with three bedrooms and two bathrooms. (Round intermediate coefficient values to 2 decimal places. Round your answer to 2 decimal places.) Price $ _______