Reference no: EM133251903
A realtor in Arlington, Massachusetts, is analyzing the relationship between the sale price of a home (Price in $), its square footage (Sqft), the number of bedrooms (Beds), and the number of bathrooms (Baths). She collects data on 36 sales in Arlington in the first quarter of 2009 for the analysis. A portion of the data is shown in the accompanying table. Price Sqft Beds Baths 560,000 1,845 3 2.0 632,308 1,923 3 2.0 ? ? ? ? 307,500 850 1 1.0 Click here for the Excel Data File a. Estimate the model: Price = β0 + β1Sqft + β2Beds + β3Baths + ε. (Round Coefficients to 2 decimal places.) b-1. Interpret the coefficient of sqft. multiple choice 1 For every additional square foot, the predicted price of a home increases by $123.11. For every additional square foot, the predicted price of a home increases by $123.11, holding number of bedrooms and bathrooms constant. For every additional square foot, the predicted price of a home increases by $123.11, holding square foot, number of bedrooms and bathrooms constant. b-2. Interpret the coefficient of beds. multiple choice 2 For every additional bedroom, the predicted price of a home increases by $28,115.32. For every additional bedroom, the predicted price of a home increases by $28,115.32, holding square footage and number of baths constant. For every additional bedroom, the predicted price of a home increases by $28,115.32, holding square foot, number of bedrooms and bathrooms constant. b-3. Interpret the coefficient of baths. multiple choice 3 For every additional bathroom, the predicted price of a home increases by $69,668.67. For every additional bathroom, the predicted price of a home increases by $69,668.67, holding square footage and number of bedrooms constant. For every additional bathroom, the predicted price of a home increases by $69,668.67, holding square foot, number of bedrooms and bathrooms constant. c. Predict the Priceˆ of a 2,191 square-foot home with four bedrooms and three bathrooms. (Round coefficient estimates to at least 4 decimal places and final answer to the nearest whole number.)
Excel Data
Price Sqft Beds Baths
560000 1845 3 2.0
632308 1923 3 2.0
831833 2800 4 3.0
689000 2200 3 2.5
685000 2716 3 3.5
774000 3029 5 1.0
432692 1891 3 1.5
620000 2436 4 3.5
783333 2800 4 2.0
585000 1947 3 1.5
795000 3033 4 3.5
569000 3262 4 2.0
546000 1792 3 2.0
540000 1488 3 1.5
537000 2907 3 2.5
344000 1301 3 1.0
738111 2531 4 2.5
714000 2418 4 3.0
693000 2369 4 3.0
463000 1714 3 2.0
457000 1650 3 2.0
631400 2359 4 3.0
435000 1500 3 1.5
431700 1896 2 1.5
414000 1182 2 1.5
401500 1152 3 1.0
319200 1106 3 1.0
253333 896 3 1.0
475000 1590 3 2.0
375900 2275 5 1.0
620000 1675 3 2.0
459375 1590 3 2.0
534750 2147 3 3.0
247500 1022 2 1.0
247500 1099 2 1.0
307500 850 1 1.0