Spring is a peak time for selling houses. The table below contains the selling price, number of
Question:
Spring is a peak time for selling houses. The table below contains the selling price, number of bathrooms, square footage, and number of bedrooms of 26 homes in a certain city.
Selling Price | Baths | Sq Ft | Beds |
---|---|---|---|
160,000 | 1.5 | 1,786 | 3 |
170,000 | 2 | 1,768 | 3 |
178,000 | 1 | 1,219 | 3 |
182,500 | 1 | 1,578 | 2 |
195,100 | 1.5 | 1,125 | 3 |
212,500 | 2 | 1,196 | 2 |
245,900 | 2 | 2,128 | 3 |
250,000 | 3 | 1,280 | 2 |
255,000 | 2 | 1,596 | 3 |
258,000 | 2.5 | 2,374 | 4 |
267,000 | 3.5 | 2,439 | 3 |
268,000 | 2 | 1,470 | 4 |
275,000 | 2 | 1,668 | 4 |
Selling Price | Baths | Sq Ft | Beds |
---|---|---|---|
295,000 | 2.5 | 1,860 | 3 |
325,000 | 2 | 2,056 | 4 |
325,000 | 3.5 | 2,776 | 4 |
328,400 | 2 | 1,408 | 3 |
331,000 | 1.5 | 1,972 | 3 |
344,500 | 2.5 | 1,736 | 3 |
365,000 | 2.5 | 1,990 | 4 |
385,000 | 2.5 | 3,640 | 4 |
395,000 | 2.5 | 1,928 | 4 |
399,000 | 2 | 2,108 | 3 |
430,000 | 2 | 2,462 | 4 |
430,000 | 2 | 2,615 | 4 |
454,000 | 3.5 | 3,700 | 4 |
QUESTIONS:
a) 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). (Round your numerical values to two decimal places. Let
x1 represent the number of baths, x2 represent the square footage, x3 represent the number of bedrooms, and y represent the selling price.)
Y=???
b) It is argued that we do not need both number of baths and number of bedrooms. Develop an estimated regression equation that can be used to predict selling price given square footage and the number of bedrooms. (Round your numerical values to two decimal places. Let x1 represent the square footage, x2 represent the number of bedrooms, and y represent the selling price.)
Y=???
c) Suppose your house has three bedrooms and is 2,850 square feet. What is the predicted selling price (in $) using the model developed in part (c). (Round your answer to the nearest cent.)
$=???