Residential real estate prices depend, in part, on property size and number of bedrooms. The house size

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Residential real estate prices depend, in part, on property size and number of bedrooms. The house size X1 (in hundreds of square feet), number of bedrooms X2, and house price Y (in thousands of dollars) of a random sample of houses in a certain county were observed. The data are listed in the following table.
Residential real estate prices depend, in part, on property size

Use the accompanying output to answer the following questions.
a. Determine the least-squares estimates for the model in which house price is regressed on both house size and number of bedrooms. Find the predicted average price of a 2,500-square-foot home that has four bedrooms.
b. Compare the R2-value for the regression in part (a) with the r2 value for the data in Problem 16 of Chapter 5. Does adding X2 to a model that already contains X1 appear to be useful in predicting the house price?

Residential real estate prices depend, in part, on property size
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Applied Regression Analysis and Other Multivariable Methods

ISBN: 978-1285051086

5th edition

Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg

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