Question
Price Sqft Beds Baths Colonial 889000 2883 4 3 1 791000 2552 1 2.5 0 728000 2189 2 3 1 711000 2415 3 2 0
| Price | Sqft | Beds | Baths | Colonial |
| 889000 | 2883 | 4 | 3 | 1 |
| 791000 | 2552 | 1 | 2.5 | 0 |
| 728000 | 2189 | 2 | 3 | 1 |
| 711000 | 2415 | 3 | 2 | 0 |
| 649000 | 2836 | 2 | 3 | 1 |
| 622000 | 2372 | 1 | 2 | 1 |
| 593000 | 2954 | 1 | 1.5 | 0 |
| 610000 | 2301 | 3 | 2.5 | 1 |
| 583000 | 2049 | 3 | 1.5 | 1 |
| 580000 | 1867 | 4 | 1.5 | 0 |
| 623000 | 2235 | 3 | 2.5 | 1 |
| 579000 | 3141 | 3 | 2 | 0 |
| 575000 | 1835 | 3 | 3 | 1 |
| 518000 | 1633 | 2 | 1.5 | 0 |
| 535000 | 3121 | 4 | 3.5 | 1 |
| 493000 | 1910 | 4 | 2 | 0 |
| 545000 | 1612 | 1 | 2.5 | 0 |
| 551000 | 1583 | 4 | 3 | 0 |
| 476000 | 1820 | 3 | 3 | 0 |
| 457000 | 1838 | 4 | 2 | 1 |
| 426000 | 1631 | 3 | 3 | 1 |
| 457000 | 1886 | 2 | 2 | 1 |
| 457000 | 1262 | 4 | 1.5 | 1 |
| 386000 | 1899 | 3 | 1.5 | 1 |
| 455000 | 1173 | 4 | 1.5 | 0 |
| 425000 | 1055 | 4 | 2 | 0 |
| 350000 | 1296 | 4 | 1 | 1 |
| 373000 | 1367 | 3 | 1 | 0 |
| 401000 | 1066 | 1 | 1 | 0 |
| 408000 | 2446 | 2 | 1 | 0 |
| 359000 | 1173 | 1 | 1 | 0 |
| 327000 | 1467 | 4 | 1 | 1 |
| 365000 | 1547 | 1 | 2 | 0 |
| 354000 | 1254 | 3 | 1 | 0 |
| 372000 | 1567 | 3 | 1 | 0 |
| 268000 | 995 | 1 | 1 | 1 |
A realtor is analyzing the relationship between the sale price of a home
(
Price in $
)
,
its square footage
(
sqft
)
,
the number of bedrooms
(
beds
)
,
the number of bathrooms
(
baths
)
,
and a colonial dummy variable
(
colonial equals
1
if a colonial style home,
0
otherwise
)
.
The accompanying data file shows information on
3
6
recent home sales.
Estimate the model: Price
=
B
0
+
B
1
SQFT
+
B
2
Beds
+
B
3
Baths
+
B
4
Colonial
+
E
.
Coefficients
Intercept
_
_
_
_
_
_
_
_
_
_
Sqft
_
_
_
_
_
_
_
_
_
_
_
_
_
Beds
_
_
_
_
_
_
_
_
_
_
_
Baths
_
_
_
_
_
_
_
_
_
_
_
Colonial
_
_
_
_
_
_
_
_
_
_
_
Interpret the coefficient of beds.
a
.
For each additional bedroom in a house, the average price of a house is expected to decrease by $
2
3
6
5
all else constant.
b
.
For each additional bedroom in a house, the average price of a house is expected to increase by $
2
3
6
5
all else constant.
c
.
As the price of a house decreases by $
2
3
6
5
the house is expected to have one less bedroom all else constant.
d
.
As the price of a house decreases by $
2
3
6
5
the house is expected to have one more bedroom all else constant.
Interpret the coefficient of colonial.
a
.
All else constant, the price of a colonial
-
style is on average, $
2
1
0
4
7
less than a non
-
colonial style.
b
.
All else constant, the price of a colonial
-
style is on average, $
2
1
0
4
7
more than a non
-
colonial style.
c
.
All else constant, the price of a colonial
-
style is on average, $
1
5
8
,
7
0
6
less than a non
-
colonial style.
d
.
All else constant, the price of a colonial
-
style is on average, $
1
5
8
,
7
0
6
more than a non
-
colonial style.
Construct the
9
5
%
confidence interval for expected price for a
2
5
0
0
square foot, colonial
-
style home with three bedrooms and two bathrooms.
Confidence Interval
_
_
_
_
_
_
_
_
_
_
to
_
_
_
_
_
_
_
_
_
_
Construct the
9
5
%
prediction interval for price for a
2
5
0
0
square foot, colonial
-
style home with three bedrooms and two bathrooms.
Prediction Interval
_
_
_
_
_
_
_
_
_
_
to
_
_
_
_
_
_
_
_
_
_
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Intro Stats
Authors: Richard D. De Veaux, Paul F. Velleman, David E. Bock
3rd edition
321533283, 321533289, 9780321463708, 9780321503848, 9780321503800, 9780321499431, 9780321499417, 978-0321500458
