Question: Use software with the Houses data file at the text website to conduct a multiple regression analysis of y = selling price of home (dollars),

Use software with the Houses data file at the text website to conduct a multiple regression analysis of y =

selling price of home (dollars), x1 = size of home (square feet), x2 = number of bedrooms, x3 = number of bathrooms.

(a) Use scatterplots to display the effects of the explanatory variables on y. Explain how the highly discrete nature of x2 and x3 affects the plots.

(b) Report the prediction equation and interpret the estimated partial effect of size of home.

(c) Inspect the correlation matrix, and report the variable having the (i) strongest association with y, (ii) weakest association with y.

(d) Report R2 for this model and r2 for the simpler model using x1 alone as the explanatory variable. Interpret.

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