An agent for Decade 100 Real Estate Company is interested in developing a model that explains the value of a piece of real estate. She collects data on the following variables:

(a) Which variables should be the independent variables?

(b) Write down a multiple regression equation that might be of interest to this realtor, and explain to her what signs to expect for the regression coefficients and how to interpret the regression coefficients.

(c) Explain the usefulness of this model.

(d) Will employing confidence intervals for forecasted values be useful in this analysis? Explain.

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Number of bedrooms Number of bathrooms Miles from main highway Sales price Age of house Size of lot