Suppose I desire to predict the price of a new home. I use the following variables to help predict the price:

Quantitative Variables:

• Size of home (x1),
• Age of house (x2)

Qualitative Variables:

• Neighborhood (Valrico, Brandon, and Plant City - modeled by the two dummy variables x3and x4)
• Gated Community or Not (Yes or No - modeled by the dummy variable x5)

Suppose after all model building, the final model ended up being:

E(Y)=

0

+

1

x

1

+

2

x

2

1

+

3

x

3

+

4

x

4

E(Y)=0+1x1+2x12+3x3+4x4

Or, if you cannot read the greek letters in the formula above:

E(Y)= b0+ b1x1+ b2x12+ b3x3+ b4x4

Group of answer choices

Is the Price-Size relationship linear or curvilinear?

[ Choose ]

4

Unknown

Linear

Curvilinear

2

3

How many lines or curves would be represented by this model

[ Choose ]

4

Unknown

Linear

Curvilinear

2

3