House Prices:

Spring is a peak time for selling houses. Suppose the attached file SpringHouses (Picture attached) contains the selling price, number of bathrooms, square footage, and number of bedrooms of 26 homes sold in Chicago, IL.

Use only one Excel Sheet to answer the questions below.

a. Develop scatter plots of selling price versus number of bedrooms, insert a trend line, and comment on the relationship between the selling price and the number of bedrooms. Be sure to place bedrooms on the X-axis and the selling price on the Y-axis.

b. Develop an estimated regression equation that can be used to predict the selling price given the three independent variables (number of baths, square footage, and number of bedrooms).

c. Interpret the coefficients you obtained in part (b) for each of the variables. Be sure to interpret the coefficients in terms of the direction, magnitude, and the significance of the relationship.

d. Suppose your house has four bedrooms and is 2650 square feet. What is the predicted selling price using the model developed in part (c).