Suppose that, in a particular city, a regression of prices of homes sold in the prior year

Question:

Suppose that, in a particular city, a regression of prices of homes sold in the prior year (price) on the number of bedrooms (bedrooms) and square feet (sqft) yields the following regression model:

a. Interpret the coefficient estimate on sqft.

b. If a home had 2 bedrooms and was 1500 square feet, what would the predicted price be?

c. If that home had a selling price of $170,000, what would be the residual?

d. How would you interpret the residual?

e. What is a possible reason for the residual being what it is?

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Regression Analysis

ISBN: 9781032257839

2nd Edition

Authors: Jeremy Arkes

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Question Posted: Jan 04, 2024 12:41 AM

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Suppose that, in a particular city, a regression of prices of homes sold in the prior year

Question:

price = 100,000+ 45,000 bedrooms + 10 sqft

Step by Step Answer:

From price 100000 45000 bedrooms 10sqft a Each square foot of hom...View the full answer

Regression Analysis

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