Question
Multiple regression question - I have a general equation for change in price per square foot of different homes (rural, city, suburb, where suburb is
Multiple regression question - I have a general equation for change in price per square foot of different homes (rural, city, suburb, where suburb is the reference variable):
Change_in_?price_per_sqft = -47.14 + 0.0059(footage) + 11.9(number_of_baths) - 6.1(distance) +
51.7(City) + 32.4(Rural) - 0.011(footage)(City) - 0.005(footage)(Rural) -
22.0(number_of_baths)(City) - 9.0(number_of_baths)(Rural) + 7.6(distance)(City) +
6.2(distance)(Rural)
I figured out what that equation would be for City homes, specifically:
City = -47.14 + 0.0059(footage) + 11.9(number_of_baths) - 6.1(distance) + 51.7 - 0.011(footage) + 22.0(number_of_baths) + 7.6(distance) Change in price/sq. ft., City=4.56 + 0.0048(footage) + 33.9(number_of_baths) + 1.5(distance)
A question had us calculate what the predicted change in price per square foot would be given specific values (Number_of_baths = 2 bathrooms, distance = 5 miles, footage = 2000 square feet), which I calculated as: Change in price/sq. ft. = 4.56 + 0.0048(2000) + 33.9(2) + 1.5(5) = ~$89.46
I am stumped on the follow up question:
What is the approximate prediction interval corresponding to the previous question? Show work.
I assume it wants us to do a 95% confidence interval or something, but I'm not sure. I am attaching an output I have from JMP, the statistics tool we're using. Hopefully that helps and massive thanks in advance for any help.
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