Spring is a peak time for selling houses. The table below contains the selling price, number of bathrooms, square footage, and in city Selling Price Baths Sq Ft Beds Selling Price Baths Sq Ft Beds 160,00 1.5 1,786 195,005 2.5 1,860 170,090 1,768 325,000 2 2,056 178,00 1 1,219 325,000 3.5 2,776 182,50 1 1,558 28,400 2 1,408 195,100 1.5 1,125 331,000 1.5 1,972 212,50 1,196 344,505 2.5 1,736 245,90 2 2,128 365,000 2.5 1,990 250,00 3 1,280 385,600 2.5 3,640 255,00 2 1,596 395,000 2.5 1,908 258,00 3.5 2.374 399,06 2,108 267,00 3.5 2,439 430,000 2 2,462 268,000 2 1,470 430,005 2 2,615 275,00 2 1,068 454,000 3.5 3,700 (#) Develop scatter plots of selling price versus number of bathrooms. 800 000 350 000 200 606 . . 190 000 100 000 100 090 54 000 35 25 Number of Bathrooms Number of Bathrooms G 500-600 500 060 450 060 . .. 400-009 350 090 . . .. 20 000 200 00 300 606 110 090 15900 100 060 15 25 35 25 Number of Bathrooms Number of Bathrooms What is the relationship between the selling price of a house and the number of bathrooms in it? As the number of bathrooms Increases, the selling price Increases As the number of bathrooms increases, the selling price decreases. Develop a scatter plot of selling price versus square footage. 500 090 450 00 400 000 590-000 350 00 300 030 200 00 200 090 1:10 090 15900 100 000 100 00 51900 500 1506 2000 2500 3000 3500 4000 300 1003 1506 2000 2500 3000 3530 4006 Square Feet Square Feet 450 000 800 090 350 009 350 00 300-090 250 000 500-606 58500 1509 2009 2509 2009 1509 4090 Square Feet Square Feet What is the relationship between the selling price of a house and its square footage? As the square footage of the house increases, the selling price increases. As the square footage of the house creases, the selling price decreases. Develop a scatter plot of selling price versus m mber of bedrooms. 500-000 T 450 000 400-00 ... .. . .. .. 209009 290606 . . . 500609 150 000 100 000 50:000 50800 15 15 Number of Bedrooms Number of Bedrooms 450 090 . . .. 350 000 300-000 .. ... . . 150000 200000 1:90606 160606 15 2 25 1 AS as 15 2 25 Number of Bedrooms Number of Bedrooms What is the relationship between the selling price of a house and the number of bedrooms in it? As the number of bedrooms Incre increases. At the number of bedrooms Increases, the selling price decreases. (b) Develop an cicimated 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 x; represent the number of baths, x, represent the square footage, x, represent the number of bedrooms, and y represent the selling price.) (c) 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 x, represent the square footage, >, represent the number of bedrooms, and y represent the selling price. ) (6) Suppose your house has three bedrooms and is 2,450 square feet. What is the predicted selling price (in $) using the model developed in part (c]. (Round your answer to the nearest cent.)
