Nassau County is located approximately 25 miles east of New York City. The data organized and stored in “Glen_Cove.xlsx” file include the fair market value (in $thousands), land area of the property in acres, and age, in years for a sample of 30 single-family homes located in Glen Cove, a small city in Nassau County. Develop a multiple linear regression model to predict the fair market value based on land area of the property (in acres) and age, in years. 

 

State the multiple regression equation.

Interpret the meaning of b1 and b2, in this problem.

What is the significance of b0?

Predict the mean fair market value for a house that has a land area of 0.55 acre and is 25 years old.

Calculate the residual for Address “1 Raynham Road”. Based on the value of residual, what can we conclude? Does our regression model overestimate or underestimate the fair market value?

How much percent of variation in the fair market value is explained by the regression model?

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Fair Market Property Size House Size Address Value ($000) (acres) Age (square feet) Rooms Baths Garage 9 Sycamore Road 522.9 0.2297 56 2448 7 3.5 21 Jefferson St 425.0 0.2192 61 1942 7 2.5 1 38 Hitching Post Lane 539.2 0.1630 39 2073 2 4 Poppy Lane 628.2 0.4608 28 2707 8 2.5 1 5 Daniel Drive 490.4 0.2549 56 2042 7 1.5 1 15 Francis Terrace 487.7 0.2290 98 2089 7 23 Guilfoy Street 370.3 0.1808 58 1433 7 17 Carlyle Drive 777.9 0.5015 17 2991 9 2.5 1 8 Craft Avenue 347.1 0.2229 62 1008 1 22 Beechwood Ct. 756.8 0.1300 25 3202 8 2.5 2 14 Fox Street 389.0 0.1763 64 2230 8 2 1 Raynham Road 889.0 1.3100 62 1848 7 2 1 2 Jerome Drive 452.2 0.2520 56 2100 6. 2 7 Valentine Street 412.4 0.1148 22 1846 3 1 38 Jefferson Street 338.3 0.1693 74 1331 1 1 15 Inwood Road 334.3 0.1714 62 1344 8 1 29 Meadowfield Lane 437.4 0.3849 54 1822 6. 2 1 13 Westland Drive 644.0 0.6545 56 2479 6. 2.5 79 Valentine Street 387.8 0.1722 62 1605 6. 13 Fairmont Place 399.8 0.1435 88 2080 11 1 Prestwick Terrace 356.4 0.2755 81 2410 1 1 11 Clement Street 346.9 0.1148 107 1753 8 7 Woodland Road 541.8 0.3636 55 1884 7 2 36 Elm Avenue 388.0 0.1474 51 2050 10 2 17 Duke Place 564.0 0.2281 50 2978 6 2.5 12 Prospect Avenue 454.4 0.4626 92 2132 7 1 Buckeye Road 417.3 0.1889 64 1551 30 Ann Street 318.8 0.1228 54 1129 1 26 Broadfield Place 519.8 0.1492 44 1674 7 1 16 Jackson Street 310.2 0.0852 104 1184 1 12 Fair Market Property Size House Size Address Value ($000) (acres) Age (square feet) Rooms Baths Garage 9 Sycamore Road 522.9 0.2297 56 2448 7 3.5 21 Jefferson St 425.0 0.2192 61 1942 7 2.5 1 38 Hitching Post Lane 539.2 0.1630 39 2073 2 4 Poppy Lane 628.2 0.4608 28 2707 8 2.5 1 5 Daniel Drive 490.4 0.2549 56 2042 7 1.5 1 15 Francis Terrace 487.7 0.2290 98 2089 7 23 Guilfoy Street 370.3 0.1808 58 1433 7 17 Carlyle Drive 777.9 0.5015 17 2991 9 2.5 1 8 Craft Avenue 347.1 0.2229 62 1008 1 22 Beechwood Ct. 756.8 0.1300 25 3202 8 2.5 2 14 Fox Street 389.0 0.1763 64 2230 8 2 1 Raynham Road 889.0 1.3100 62 1848 7 2 1 2 Jerome Drive 452.2 0.2520 56 2100 6. 2 7 Valentine Street 412.4 0.1148 22 1846 3 1 38 Jefferson Street 338.3 0.1693 74 1331 1 1 15 Inwood Road 334.3 0.1714 62 1344 8 1 29 Meadowfield Lane 437.4 0.3849 54 1822 6. 2 1 13 Westland Drive 644.0 0.6545 56 2479 6. 2.5 79 Valentine Street 387.8 0.1722 62 1605 6. 13 Fairmont Place 399.8 0.1435 88 2080 11 1 Prestwick Terrace 356.4 0.2755 81 2410 1 1 11 Clement Street 346.9 0.1148 107 1753 8 7 Woodland Road 541.8 0.3636 55 1884 7 2 36 Elm Avenue 388.0 0.1474 51 2050 10 2 17 Duke Place 564.0 0.2281 50 2978 6 2.5 12 Prospect Avenue 454.4 0.4626 92 2132 7 1 Buckeye Road 417.3 0.1889 64 1551 30 Ann Street 318.8 0.1228 54 1129 1 26 Broadfield Place 519.8 0.1492 44 1674 7 1 16 Jackson Street 310.2 0.0852 104 1184 1 12

Answer rating: 100% (QA)

Using Data Analysis toolpak in Excel B C 1 Fair market v... View the full answer