Question
f. Compare your answers in part (c) and part (d). [2 points] g. Interpret 2 [2 points] h. Compute the predicted selling price for a
f. Compare your answers in part (c) and part (d). [2 points]
g. Interpret 2 [2 points]
h. Compute the predicted selling price for a house with 4 bedrooms and 2438 square feet. [2 points]
i. The actual price for this house is $300,000. Find the residuals for this house. Does it suggest that the buyer overpaid or underpaid for this house compared to the predicted average price of a house with the same specifications? [2 points]
j. When you regress only on , you get the following result: = 72.23 + 62.02
Interpret and explain this difference in the coefficient on compared to the one you get after you also include the size of the house. [4 points]
k. Next, you want to capture the increasing returns to square feet of a house. Write the multiple regression model that captures this relationship that also accounts for bedrooms. [2 points]
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