As a class project, students in a large statistics class collected publicly available information on recent home sales in their hometowns. There are 894 properties. Important predictors of the price of a home are its living area (sq ft) and the number of bathrooms. In fact, the correlation of Price with Bathrooms is 0.378. Here is a regression:

a) What is a correct interpretation of the coefficient of Bathrooms? Here is a partial regression plot for the coefficient of Bathrooms along with a least squares regression line:

b) What is the slope of the regression line in this plot?

Transcribed Image Text:

Response variable is: Price R squared = 16.6% s = 263970 Variable Intercept Living area Bathrooms Coefficient 126832 64.6077 75020.3