Menu

Consider The Following Multivariate Linear Regression Model Of House Prices

0 Comment

price = 89,92fl + 12,206 sqft + 22,423 acres — 8,432 age where price is the selling price of a house (in 2020 dollars), sq}? is the size of the house in square
feet, acres is the lot size in acres, and age is the age of the house in years. {i} Interpret each regression coefficient. {ii} ‘What price does the model predict for an LED!) square foot house built on three acres
in 1929‘? {iii} Calculate the fitted value of price if the mean square footage is 2,202, the mean lot
acreage is 0.52, and the average age is 22. (it?) Name another factor that you could include in this model that you would expect to
have a negative marginal eifect on selling price. Economics