A regression was performed to predict selling Price of houses in dollars from their Area in square feet, Lotsize in square feet, and Age in years. The R2 is 92%. The equation from this regression is given here.
Price = 169,328 + 35.3 Area + 0.718 Lotsize - 6543 Age One of the following interpretations is correct. Which is it? Explain what’s wrong with the others.
a) Each year a house ages, it is worth $6543 less.
b) Every extra square foot of area is associated with an additional $35.50 in average price, for houses with a given lot size and age.
c) Every additional dollar in price means lot size increases 0.718 square feet.
d) This model fits 92% of the data points exactly.