Nassau County is located approximately 25 miles east of New York City. The data organized and stored
Question:
Nassau County is located approximately 25 miles east of New York City. The data organized and stored in “Glen_Cove.xlsx” file include the fair market value (in $thousands), land area of the property in acres, and age, in years for a sample of 30 single-family homes located in Glen Cove, a small city in Nassau County. Develop a multiple linear regression model to predict the fair market value based on land area of the property (in acres) and age, in years.
State the multiple regression equation.
Interpret the meaning of b1 and b2, in this problem.
What is the significance of b0?
Predict the mean fair market value for a house that has a land area of 0.55 acre and is 25 years old.
Calculate the residual for Address “1 Raynham Road”. Based on the value of residual, what can we conclude? Does our regression model overestimate or underestimate the fair market value?
How much percent of variation in the fair market value is explained by the regression model?
Statistics for Managers Using Microsoft Excel
ISBN: 978-0133130805
7th edition
Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat