A study [5] of the housing market in Fishers, Indiana, looked at 15 matched pairs of houses that were sold or rented in 2005. Table 10.3 shows the sale price for each house, the size of the house (square feet), and the monthly rent for the house that is a matched pair.

a. Estimate a simple regression equation using price as the dependent variable and size as the explanatory variable.

b. Estimate a simple regression equation using price as the dependent variable and rent as the explanatory variable.

c. Estimate a multiple regression equation using price as the dependent variable and size and rent as explanatory variables.

d. Explain any differences between your multiple regression equation

(c) and the two simple regression equations (a and b).

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Table 10.3: Exercise 10.9 Price ($) Size Rent ($) Price ($) Size Rent ($) 137,000 1,300 1,100 143,000 2,213 1,250 208,000 2,146 1,200 127,500 1,122 1,000 123,000 1,390 875 134,000 1,917 1,250 167,500 2,008 1,250 315,000 3,014 2,150 181,400 2,160 1,500 164,900 2,008 1,550 344,950 2,931 2,100 136,000 1,696 1,150 132,500 1,316 1,150 200,000 2,301 2,800 130,000 1,352 1,100