Question: Rhonda Clark a Slippery Rock Pennsylvania real estate developer has

Rhonda Clark, a Slippery Rock, Pennsylvania, real estate developer, has devised a regression model to help determine residential housing prices in northwestern Pennsylvania. The model was developed using recent sales in a particular neighbor-hood. The price (Y) of the house is based on the size ( square foot-age 5 X) of the house. The model is:
Y = 13,473 + 37.65X
The coefficient of correlation for the model is 0.63.
a) Use the model to predict the selling price of a house that is 1,860 square feet.
b) An 1,860- square- foot house recently sold for $ 95,000. Explain why this is not what the model predicted.
c) If you were going to use multiple regressions to develop such a model, what other quantitative variables might you include?
d) What is the value of the coefficient of determination in this problem?

View Solution:

Sale on SolutionInn
  • CreatedMarch 20, 2014
  • Files Included
Post your question