Question: Janice Camrllo, a Gainesville, Florida, real estate developer, has devised a regression model to heip determine residential housing prices in northeastem Florida. The model was
Janice Camrllo, a Gainesville, Florida, real estate developer, has devised a regression model to heip determine residential housing prices in northeastem Florida. The model was developed using recent sales in a particular neighborhood. The price (Y ) of the house is based on the size (square footage w X) of the house. The model is: Y=12,973+42.75X The coeflicient of correlation for the modet is 0.73 . a) Using the above model, the selling price of a house that is 1,860 square feet =$ (onter a whole number). b) A 1,860-6quare-foot house recently sold for $105,000, which is different than the predicted value. This is as the forocast represents c) To make this model more realistic, additional quantitative variables that could be included in a multiple regression model are (seloct the choice that has all the factors that are quantifiable): A. The age of the house, the number of bedrooms, and the sire of the lot. B. The size of the lot, the number of bedrooms, and the layout of the rooms. C. The age of the house, the location of the house, and the size of the garage d) For the given model, the value of the coefficient of determination = (round your response to three docimal places)
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