A new real estate firm is opening in Snobby Pines, Virginia. The firm wants to get an idea of how housing prices are set in the area. In order to do so, real estate agent Anita Commission regresses the purchase price of houses (Y) on square feet of living space in the house (X1) and its age in years (X2) for a random sample of 125 houses sold in Snobby Pines in the last year. The results follow:
 = 2491 + 42.1X1 – 100.3X2
sb = 12.3 88.9
R2 = .83 Sy|x = 1454
Analyze these results for Ms. Commission.

  • CreatedNovember 11, 2015
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