How do real estate agents decide on the asking price for a newly listed condominium?

A computer database in a small community contains the listed selling price y (in thousands of dollars), the amount of living area 1 x (in hundreds of square feet), and the numbers of floors 2 x , bedrooms 3 x , and bathrooms 4 x , for n515 randomly selected condos currently on the market.

The data are shown in Table 13.1.

The multiple regression model is

Transcribed Image Text:

List Price, y Table 13.1 Data on 15 Condominiums Observation Living Area, x, Floors, x Bedrooms, x Baths, X 11 12 -23456789012345 169.0 6 218.5 10 216.5 10 225.0 11 1 229.9 13 1 235.0 13 2 239.9 13 1 247.9 17 2 260.0 19 10 269.9 18 234.9 13 255.0 18 13 269.9 17 14 294.5 20 15 309.9 21 2111222 22333333 3344444 1 2 2 2 1.7 2.5 2 2.5 2 2 2 2 3 3 3