A real estate company wants to study the relationship between house sales prices and some important...
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A real estate company wants to study the relationship between house sales prices and some important predictors of sales prices. Based on data from recently sold homes in the space, the following variables are used in a multiple regression model. y x₁ sales price (in thousands of dollars) total floor area (in square feet) x₂ number of bedrooms x₁ distance to nearest high school (in miles) The estimated model is as follows. y=143+0.079x, +15x₂-4x3 Answer the questions below for the interpretation of the coefficient of x, in this model. (a) Holding the other variables fixed, what is the average change in sales price for each 100-square-foot increase in floor area? dollars (b) Is this change an increase or a decrease? O increase O decrease X A real estate company wants to study the relationship between house sales prices and some important predictors of sales prices. Based on data from recently sold homes in the space, the following variables are used in a multiple regression model. y x₁ sales price (in thousands of dollars) total floor area (in square feet) x₂ number of bedrooms x₁ distance to nearest high school (in miles) The estimated model is as follows. y=143+0.079x, +15x₂-4x3 Answer the questions below for the interpretation of the coefficient of x, in this model. (a) Holding the other variables fixed, what is the average change in sales price for each 100-square-foot increase in floor area? dollars (b) Is this change an increase or a decrease? O increase O decrease X
Expert Answer:
Answer rating: 100% (QA)
Solution Here we have given the Regression Equation is as follows Y 143 0079X1 ... View the full answer
Related Book For
Business Statistics A First Course
ISBN: 978-0321979018
7th edition
Authors: David M. Levine, Kathryn A. Szabat, David F. Stephan
Posted Date:
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