Question
A real estate agent wished to estimate the relationship between the sale price of residential properties (in $Thous) and the characteristics of the house. The
A real estate agent wished to estimate the relationship between the sale price of residential properties (in $Thous) and the characteristics of the house. The characteristics included in the regression were the age of the house in years, the number of rooms in the house (size), a variable representing the materials used to build the house (1= brick, 0= timber) and a variable representing whether or not the property has a swimming pool (1=yes). The following is an extract from the output produced:
Coefficients | Standard Error | |
Intercept | 55 | 8.3 |
Age | -2.2 | 0.35 |
Size | 7.3 | 0.92 |
Material | 15 | 1.75 |
Pool | 12 | 1.43 |
By how many dollars (to the nearest whole dollar) does a 7 year old, 12 room timber house with a pool exceed the predicted price of a brand new 9 room brick house with no pool? (Insert a negative sign in your answer if the first house has a lower predicted value than the second).
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