Question
A house in a nearby neighborhood has 5bedrooms and 1500square feet of living area. Use the following multiple regression model to answer parts a through
A house in a nearby neighborhood has 5bedrooms and 1500square feet of living area. Use the following multiple regression model to answer parts a through c below.
Price=21,111.77-7428.83 Bedrooms + 94.09 Living area.
a) Find the price that this model estimates.
b) The house just sold for $291,000Find the residual corresponding to this house.
c) What does that residual say about thistransaction?
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Making Hard Decisions with decision tools
Authors: Robert Clemen, Terence Reilly
3rd edition
538797576, 978-0538797573
