For the real estate data of the previous exercise, consider the value of the number of bedrooms
Question:
For the real estate data of the previous exercise, consider the value of the number of bedrooms in modeling the price of a home. The correlation between Price and Bedrooms is 0.116. Here is a regression model:
a) What is a correct interpretation of the coefficient of Bedrooms?
b) The correlation of Price and Bedrooms is positive. How can the regression coefficient of Bedrooms be negative?
Here is a partial regression plot for the coefficient of Bedrooms along with a least squares regression line:
c) What is the slope of the regression line in the partial regression plot?
d) A homeowner proposes to convert his living room to a bedroom, thinking that more bedrooms would make his home more valuable. What do you think?
Step by Step Answer:
Intro Stats
ISBN: 9780134668420
5th Edition
Authors: Richard D De Veaux, Paul F Velleman, David E Bock, Nick Horton