Lydia Bennet, a realtor in Brownsburg, Indiana, would like to use estimates from a mulitple regression model to help prospective sellers determine a reasonable asking
Lydia Bennet, a realtor in Brownsburg, Indiana, would like to use estimates from a mulitple regression model to help prospective sellers determine a reasonable asking price for their homes. She believes that the following four factors influence the asking price (Price) of a house:
square footage (SQFT)
NUmber of bedrooms (Bed)
Numbers of bathrooms (bath)
Lot Size (LTSZ)
She randomly collects online listings for 50 single-family homes.
Price
SQFT
Bed
Bath
LTSZ
399900
5.026
4
4.5
0.3
375000
3.2
4
3
5
372000
3.22
5
3
5
370000
4.927
4
4
0.3
325000
3.904
3
3
1
325000
2.644
3
2.5
5
319500
5.318
3
2.5
2.5
312900
3.144
4
2.5
0.3
299900
2.8
4
3
5
294900
3.804
4
3.5
0.2
269000
3.312
5
3
1
250000
3.373
5
3.5
0.2
249900
3.46
2
2.5
0.6
244994
3.195
4
2.5
0.2
244900
2.914
3
3
0.3
239900
2.881
4
5
0.3
234900
1.772
3
2
3.6
234000
2.248
3
2.5
0.3
229900
3.12
5
2.5
0.2
219900
2.942
4
2.5
0.2
209900
3.332
4
2.5
0.2
209850
3.407
3
2.5
0.3
206900
2.092
3
2
0.3
200000
3.859
4
2
0.2
194900
3.326
4
2.5
0.1
184900
1.874
3
2
0.5
179900
1.892
3
1.5
0.7
179500
2.5
4
2.5
0.5
165000
2.435
4
2.5
0.4
159900
2.714
3
2.5
0.2
159900
1.85
3
2.5
0.5
155000
3.068
4
3.5
0.2
154900
2.484
4
2.5
0.3
152000
1.529
4
2
0.4
149900
2.876
4
2.5
0.2
148500
2.211
4
2.5
0.1
146900
1.571
3
2
0.2
145500
1.503
4
2
0.5
144900
1.656
3
2
0.5
144900
1.521
3
2
0.6
139900
1.315
3
2
0.2
137900
1.706
3
2
0.3
132900
2.121
4
2.5
0.1
129900
1.306
3
2
0.5
129736
1.402
3
2
0.5
125000
1.325
3
2
0.3
119500
1.234
3
2
0.2
110387
1.292
3
1
0.2
106699
1.36
3
1.5
0.1
102900
1.938
3
1
0.1
Provide summary statistics. (10 points) Price SQFI' Bed Bath LTSZ Average Standard Dev. Please round ALL numerical answers to 4 decimal places. Estimate and interpret a multiple regression model where the asking price is the (5 points) response variable and the other four factors are the explanatory variables. Price = [5'0 + SQFT +32 Bed + [1'3Bath + 1841,7152 + s Discuss the coefcients of the four explanatory variables and their meaning within the context of home prices. [12 points] SQFI': Identify and interpret the resulting adjusted R2. 21
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