QUESTION 4 A real estate agent wishes to determine the selling price of residenc

Question

QUESTION 4 A real estate agent wishes to determine the selling price of residences using the size (square feet), and whether the residence is a condominium or a single-family home. A sample of 20 residences was obtained with the following results: Price () Type Square feet 1910 2750 1890 2290 2340 2370 3020 2130 2460 1960 1850 2200 2040 2560 1830 1550 2800 2420 2410 2240 253600 f 295300 C 252200 f 300900 f 302000 f 243900 C 414800 f 394900 C 08200 f 257000 C 274200 C 257500 c 274300f 310700 f 261900 C 256300 c 387100 f 268100 f 358800 f 274000f

Explanation / Answer

a)

y= 97008.87 -3086.64*Type+89.52* Square Feet

b)

B2 (Square Feet) For every increase of 1 in square foot, price would go up by 89.52 keeping all other things constant.

B1(Type) For every condominium, price would go down by 3086.64, keeping all other things constant

c)

y= 97008.87 -3086.64*Type+89.52* Square Feet

d)

P-value is 0.15 and hence it is not different.

SUMMARY OUTPUT Regression Statistics Multiple R 0.649629157 R Square 0.422018042 Adjusted R Square 0.354020164 Standard Error 41604.49201 Observations 20 ANOVA df SS MS F Significance F Regression 2.00 21485531651.25 10742765825.62 6.21 0.009468287 Residual 17.00 29425873848.75 1730933755.81 Total 19.00 50911405500.00 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 97008.87 67548.52 1.44 0.17 -45506.04 239523.79 Type -3086.64 20610.13 -0.15 0.88 -46570.22 40396.94 Square Feet 89.52 28.11 3.19 0.01 30.22 148.82

y= 97008.87 -3086.64*Type+89.52* Square Feet

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