A) interpret the slope B) is it reasonable to interpret the Y-intercept? C) one

Question

A) interpret the slope
B) is it reasonable to interpret the Y-intercept?
C) one home that is in 1902 square feet is listed as 189,00. Is this home price above or below average for a home of this size?? What might be some reason for this price?

i one of the biggest factors in determining the value of a home is the square footage. The following data represent the square footage and asking price (in thousands of dollars) for a random sample of homes for sale December 2010. in Naples, Florida, Model Summary Coefficients Error Beta 554

Explanation / Answer

Regression line

Asking Price = 83.237+0.059*square footage.

Asking Price in $1000.

When square footage increases by one square feet, the asking price increases by $59 ( 0.059*1000).

B) is it reasonable to interpret the Y-intercept?

No, it is not reasonable to interpret the Y-intercept because no meaning for a house with 0 square footage.

C) one home that is in 1902 square feet is listed as 189,00. Is this home price above or below average for a home of this size?? What might be some reason for this price?

Asking Price = 83.237+0.059*1902 = 195.455

Predicted asking price is $195455which is > 189000.

This home price is below average for a home of this size.

May be this house may be old , not furnished or no parking area.

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