Question
The following data give the selling price, square footage, number of bedrooms, and the age of the houses that have sold in a neighborhood in
The following data give the selling price, square footage, number of bedrooms, and the age of the houses that have sold in a neighborhood in the past 6 months. Develop three regression models to predict the selling price based upon each of other the other factors individually. Which of these is the best?
Selling Price($) | Square Footage | Bedrooms | Age (Years) |
84,000 | 1,670 | 2 | 30 |
79,000 | 1,339 | 2 | 25 |
91,500 | 1,712 | 3 | 30 |
120,000 | 1,840 | 3 | 40 |
127,500 | 2,300 | 3 | 18 |
132,500 | 2,234 | 3 | 30 |
145,000 | 2,311 | 3 | 19 |
164,000 | 2,377 | 3 | 7 |
155,000 | 2,736 | 4 | 10 |
168,000 | 2,500 | 3 | 1 |
172,500 | 2,500 | 4 | 3 |
174,000 | 2,479 | 3 | 3 |
175,000 | 2,400 | 3 | 1 |
177,500 | 3,124 | 4 | 0 |
184,000 | 2,500 | 3 | 2 |
195,500 | 4,062 | 4 | 10 |
195,000 | 2,854 | 3 | 3 |
Second part of question...
Using the above data and develop a regression model to predict selling price based on the square footage and number of bedrooms. Use this to predict the selling price of a 2,000 square foot house with 3 bedrooms. Compare this model with the above models. Should the number of bedrooms be included in the model? Why or why not?
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