Data from 50 homes sold in Ames, IA

For each house sold, we know its selling price (in $1000s), age (in years) and area (in ft.2)

What linear model best describes how a home's selling price is related to its age and area?

How to use it to predict selling price of a future home?

If there are many predictors, can 1st look at correlation matrix to see which are most strongly related to Y.

Data from 50 homes sold in Ames, IA For each house sold, we know its selling price [in $10005), age (in years) and area (in ft?) What linear model best describes how a home's selling price is related to its age and area? How to use it to predict selling price of a future home? If there are many predictors, can 1St look at correlation matrix to see which are most strongly related to Y. Multiple Linear Regression Home Sales Example Data come from Moore/McCabe/Duckworth/Sclove - The Practice of Basic Statistics Selling Price ($) 268380 131000 112000 112000 122000 127900 157600 135000 145900 126000 142000 107500 110000 187000 94000 99500 78000 55790 70000 53600 157000 166730 340000 195000 215850 169900 180000 127000 242500 152900 171600 195000 83100 125000 60500 85000 117000 57000 110000 127250 119000 172500 Size (sq.ft.) 1897 1157 1024 935 1236 1248 1620 1124 1248 1139 1329 1040 951 1628 816 1060 800 492 792 980 1629 1889 2759 1811 2400 1686 2054 1386 2603 1582 1790 1908 1378 1668 1248 1229 1308 892 1981 1098 1858 2010 Age 1 15 35 35 39 32 33 33 35 39 40 45 42 1 43 24 68 79 80 62 3 0 6 3 27 35 34 50 10 3 1 6 72 55 100 59 60 90 72 70 80 60 Look at XY Plots of Price vs. Size and Price vs. Age 123000 161715 179797 117250 116500 117000 177500 132000 1680 1670 1938 1120 914 1008 1920 1146 86 1 1 36 4 23 32 37