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A realtor in central valley found that the selling price (in thousand dollars) of a house is highly correlated with the number of bedrooms and
A realtor in central valley found that the selling price (in thousand dollars) of a house is highly correlated with the number of bedrooms and the age of the house (age is 10 if the house was built 10 years ago). She collected some data and derived the following regression model. An R-squared (coefficient of determination) of 0.7 is obtained. Y = 180 + 40X1 -0.5X2 where: Y is the selling price (in $000), X1 is number of bedrooms, X2 is the age of the house. House A has 2 bedrooms and was built 20 years ago. House B also has 2 bedrooms but is 8 years newer than house A. Will house B's expected selling price be higher or lower compared to house A, and by how much percent? Select one: O a. 1.6% lower O b. 1.6% higher O c. 3.2% higher O d. 3.2% lower e. 4% higher
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