Q3

Question 3 2 pts Predict sale ($thousands) Y based on living space in the house (square feet) (denoted as X1) and whether the house has a fireplace (denoted as X2) and house type, three levels, colonial, ranch, and other. We created two dummy variables, X3 and X4, for the categorical variable, house type. X3 equals 1 if house type is colonial, 0 otherwise; X4 equals 1 if house type is ranch, 0 otherwise. Yi = Bo + PIXI + B2Xz + ByXsi + ByXai + The following is the regression results in Excel. Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 332.296488 15.062026 22.0618718 2.6897E-29 302.123624 362.469352 Living Space (X1) 0.02768425 0.00790811 3.50074144 0.00091821 0.0118424 0.04352611 Fireplace (X2) 16.2773295 10.4909814 1.55155451 0.1264025 -4.7386316 37.2932906 House Type_c (X3) 169.377469 13.6483741 12.4100841 1.0402E-17 142.036491 196.718448 House Type R (X4) 81.9422133 11.4256387 7.17178402 1.8E-09 59.0539085 104.830518 The predicted Asking Price of House Type other is 169.38 more expensive than the predicted Asking Price of House Type colonial holding Living Space and Fireplace constant. The predicted Asking Price of House Type ranch is 81.94 more expensive than the predicted Asking Price of House Type other holding Living Space and Fireplace constant. O The predicted Asking Price of House Type other is 81.94 more expensive than the predicted Asking Price of House Type ranch holding Living Space and Fireplace constant. O . The predicted Asking Price of House Type colonial is 169.38 more expensive than the predicted Asking Price of House Type ranch holding Living Space and Fireplace constant