Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You work for a mortgage broker and would like to model house prices. You have data on house price (Price, measured in dollars), the
You work for a mortgage broker and would like to model house prices. You have data on house price (Price, measured in dollars), the land area of the property (LandSize, measured in square metres) and the number of Bedrooms (Beds, measured in number of bedrooms). A multiple regression with Price as the dependent variable and LandSize and Beds as the independent variables was run, leading to the following fitted model: Price = 3041.479 +4.998 x LandSize 1.853 x Beds - Which of the following are correct interpretations of the coefficients? (Select all answers that are correct.) We estimate that an increase in Beds of 1 bedroom is associated with a decrease in expected Price of 1.853 dollars holding LandSize constant. We estimate that an increase in LandSize of 1 square metre is associated with an increase in expected Price of 4.998 dollars holding Beds constant. We estimate that an increase in LandSize of 1 square metre is associated with an increase in expected Beds of 4.998 bedrooms holding Price constant. We estimate that an increase in Beds of 1 bedroom is associated with a decrease in expected LandSize of 1.853 square metres holding Price constant. We estimate that an increase in Beds of 1.853 bedrooms is associated with a decrease in expected Price of 1 dollar holding LandSize constant. We estimate that an increase in LandSize of 4.998 square metres is associated with an increase in expected Price of 1 dollar holding Beds constant.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started