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nit 15 : Midterm Exams-MidtermTest2 Solve the problem. A real estate magazine re

ID: 3152108 • Letter: N

Question


nit 15 : Midterm Exams-MidtermTest2 Solve the problem. A real estate magazine reported the results of a regression analysis designed to predict the price( subdivision. One independent variable used to predict sale price is GLA, gross living area (x), meas living areas varied from 400 square feet to 4000 square feet. The results of the simple linear regression are provided below. y = 96,600 + 22.5x Interpret the y-intercept of the line. (Points:4) O All residential properties in Virginia will sell for at least $96,600. O For every 1-sq ft. increase in GLA, we expect a property's sale price to increase $96,600. O About % of the observed sale prices fall within $96,600 of the least squares line. O There is no practical interpretation, since a gross living area of 0 is a nonsensical value. [Previous 11 of 31

Explanation / Answer

the regression line

y = 96000 + 22.5x

now as per the equation it is evident that for x = 0 square ft

the price will be 96000

which means that the minimum cost will be atleast 96000

hence the option A interpretation is correct that properties will sell for atleast 96000