5. Copy the residuals from question 4 into a new sheet. Copy Bed, Bathroom, Living, Lot, Age and Units into the sheet. a. Find the correlation among the residuals and the other variables. Copy the correlation table into your assignment.

B. You should find that Bathroom is the variable most correlated with Residuals. So, the number of bathrooms is best at explaining variation not explained by Space. Copy Space, bathroom and Price into a new sheet. Fit the model Price = intercept + coeff1*Space + coeff2*Bathroom. Remember to check Residuals and Residual Plot. What is the new regression equation?

c. If I was a homeowner and was considering converting a small bedroom into another full bathroom, what would be the estimated impact on selling price? This is only an estimate, so within what range do you think the change in price is most likely to fall 95% of the time?

d. What are the new values for R-sq and Standard Error? Has the model improved?

e. Print a copy of the Residual Plot for Bathroom.

f. Copy the residuals into a new sheet. Copy Bed, Living, Lot, Age and Units into this sheet. Which variable has the highest correlation with residuals and should be considered next in improving the model?