The following data give the selling price, square footage, number of bedrooms, a

Question

The following data give the selling price, square footage, number of bedrooms, and age of houses that sold in a neighborhood in the past 6 months. Develop three regression models to predict the selling price based upon each of the other factors individually. Which of these is best?

Selling

84,000     1670sq/ft 2 bedrooms age 30years

79000     1339sq/ft 2 bedrooms age 25 years

91500     1712sq/ft 3 bedrooms age 30 yrs

120000     1840sq/ft 2 bedrooms age 40 yrs

127500     2300sq/ft 3 bedrooms age 18 yrs

132500     2234sq/ft 3 bedrooms age 30 years

145000     2311sq/ft 3 bedrooms age 19 years

164000     2377sq/ft 3 bedrooms age 7 years

155000     2736sq/ft 4 bedrooms age 10 years

168000     2500sq/ft 3 bedrooms age 1 year

172500     2500sq/ft 4 bedrooms age 3 years

174000    2479sq/ft 3 bedrooms age 3 years

175000    2400sq/ft 3 bedrooms age 1 year

177500     3124sq/ft 4 bedrooms 0 years

184000     2500sq/ft 3 bedrooms 2 years

195500     4062sq/ft 4 bedrooms 10 years

195000     2854sq/ft 3 bedrooms 3 years  

Explanation / Answer

excel is used to do the analysis.

For sq ft

For number of bedrooms

For age

The first model is the best fit because the r value there is high.

Regression Analysis r² 0.700 n   17 r   0.837 k   1 Std. Error   21360.304 Dep. Var. selling price ANOVA table Source SS   df   MS F p-value Regression 15,966,678,628.6376 1   15,966,678,628.6376 34.99 2.83E-05 Residual 6,843,939,018.4213 15   456,262,601.2281 Total 22,810,617,647.0588 16   Regression output confidence interval variables coefficients std. error    t (df=15) p-value 95% lower 95% upper Intercept 26,532.2361 21,408.3553 1.239 .2343 -19,098.5930 72,163.0653 sq ft 51.0272 8.6259 5.916 2.83E-05 32.6416 69.4128

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