There are many determinants that can be used to estimate a home\'s value. Anothe

Question

There are many determinants that can be used to estimate a home's value. Another resent study conducted a multivariate regression model observing the following home characteristics: The following regression model was built: What is the value added to a home that has a garage? You are about to sell your home. It sits on 2 acres, is 2 stories tall, 2800 square feet, the exterior is in good condition, it contains two full baths and one half bath and has a garage. What could you expect to sell your house for?

Explanation / Answer

a) The required value added to a home with garage is $23999.

b) Substitute, X1, X2, X3, X4, X5, X6 and X7 with 2, 2, 2800, 1, 2, 1, 1.

Value=-101097+21512*2+38141*2+72.3*2800+18580*1+12218*2+14569*1+23999*1

=$225951

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