Multiple regression to develop appraisal model

Reference no: EM1394123

Steve Caples, a real estate appraiser in lake Charles Louisiana, has developed a regression model to help appraise residential housing in the Lake Charles Area. This model was developed using recently sold homes in a particular neighborhood. The price (Y) of the house is based on the square footage (X) of the house.?The model is Y = 13,473 + 37.65X The coefficient of correlation for the model is 0.63

A) Use the model to predict the selling price of a house that is 1,860 square feet.

B) A house with 1,860 square feet recently sold for $95,000. Explain why this is not what the model predicted.

C) If you were going to use multiple regression to develop an appraisal model, what other quantitative variables might be included in the model?

D. What is the coefficient of determination for this model?

Reference no: EM1394123

Questions Cloud

What is the effect of lower entry barriers on new entrants : Explain why do certain entry barriers decrease as a result of cloud computing? Illustrate what is the effect of lower entry barriers on new entrants, entrepreneurship also venture capital? On existing competitors?

Illustrate what times will keep costs : A cellular phone industry offers a contract for which the cost C, of t minutes of telephoning is provided by C + 0.25(t400) + 60.95, where it is supposed which t>400 minutes. Illustrate what times will keep costs between $102.20 also $138.95.

Trainee positions in a fast-food management program : There are 20 qualified applicants for 5 trainee positions in a fast-food management program. How many different groups of trainees can be selected?

Estimates the effectiveness of seniority : Estimates the effectiveness of seniority, assessment centers also job knowledge as substantive internal selection procedures.

Multiple regression to develop appraisal model : If you were going to use multiple regression to develop an appraisal model, what other quantitative variables might be included in the model?

Extraversion and number of siblings : A personality psychologist conducts a study to examine the relationship between extraversion and the number of siblings in a household.

Determine the initial velocity : An enzyme that follows Michaelis-Menten kinetics has a Km of 1 ?M. The initial velocity is 0.1 ?M min -1 at a substrate concentration of 100 ?M. What is the initial velocity when [S] is equal to 2 mM?

Memory development in children-research variables : A developmental psychologist is studying memory development in children. He is interested in determining the exact age at which children began to recall long-term episodic memories.

Explain core technological competencies of the company : Give the organizational and industry context, recognize the core technological competencies of organization. Recognize the basic technologies that underlie this product or service.

User Account

All Pages