A realtor in Arlington, Massachusetts, is analyzing the relationship between the

Question

A realtor in Arlington, Massachusetts, is analyzing the relationship between the sale price of a home (Price), its square footage (Sqft), the number of bedrooms (Beds), and the number of bathrooms (Baths). She collects data on 36 recent sales in Arlington in the first quarter of 2009 for the analysis. The data is shown in the accompanying table.

   

Price

Sqft

Beds

Baths

  728,000

2,399

4     

2.5     

  569,077

1,731

3     

1.5     

  831,833

2,800

4     

3.0     

  626,364

2,000

3     

2.0     

  632,308

2,507

3     

3.0     

  838,500

3,281

4     

2.5     

  528,846

2,312

4     

1.5     

  537,333

2,111

3     

3.5     

  587,500

2,100

3     

1.5     

  585,000

1,947

3     

1.5     

  689,000

2,628

3     

3.5     

  569,000

3,262

4     

2.0     

  764,400

2,509

4     

3.0     

  660,000

1,819

4     

1.5     

  537,000

2,907

3     

2.5     

  516,000

1,951

4     

2.0     

  624,556

2,141

3     

2.5     

  510,000

1,727

3     

2.0     

  495,000

1,692

3     

2.0     

  463,000

1,714

3     

2.0     

  548,400

1,980

3     

3.0     

  451,000

1,685

3     

2.0     

  531,667

1,833

4     

1.5     

  431,700

1,896

2     

1.5     

   414,000  

1,182

2     

1.5     

  602,250

1,728

4     

2.0     

  478,800

1,660

4     

2.0     

  253,333

896

3     

1.0     

  380,000

1,272

2     

2.0     

  375,900

2,275

5     

1.0     

  372,000

1,005

2     

1.0     

  275,625

954

2     

1.0     

  445,625

1,789

3     

2.0     

  247,500

1,022

2     

1.0     

  412,500

1,831

3     

2.0     

  461,250

1,275

2     

1.0     

SOURCE: http://Newenglandmoves.com.

Estimate the model Price = ?0 + ?1Sqft + ?2Beds + ?3Baths + ?. (Round Coefficients and Standard Error answers to 2 decimal places. Round t Stat and p-value answers to 4 decimal places.)

   

   

  

  

Predict the price of a 2,257-square-foot home with four bedrooms and three bathrooms. (Round intermediate coefficient values to 2 decimal places. Round your answer to 2 decimal places.)

   

A realtor in Arlington, Massachusetts, is analyzing the relationship between the sale price of a home (Price), its square footage (Sqft), the number of bedrooms (Beds), and the number of bathrooms (Baths). She collects data on 36 recent sales in Arlington in the first quarter of 2009 for the analysis. The data is shown in the accompanying table.

Explanation / Answer

lm(formula = a$Price ~ ., data = a)

Residuals:

Min 1Q Median 3Q Max

-178947 -45139 -17729 79091 152899

Coefficients:

Estimate Std. Error t value Pr(>|t|)

(Intercept) 80815.68 67119.51 1.204 0.23740

Sqft 111.91 39.26 2.851 0.00758 **

Beds 30410.26 24302.18 1.251 0.21988

Baths 67388.19 27329.79 2.466 0.01922 *

---

Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1

Residual standard error: 86270 on 32 degrees of freedom

Multiple R-squared: 0.6703,

Adjusted R-squared: 0.6394

F-statistic: 21.68 on 3 and 32 DF,

p-value: 7.489e-08

a) Intercept=80815.68

Sqft =111.91

Beds=30410.26

Baths=67388.19

c)

We need the price of a 2,257-square-foot home with four bedrooms and three bathrooms.

The equation is

Price=80815.68+111.91 *sqft+30410.26*Beds+67388.19*Baths

Substituting the values we get

Price=80815.68+111.91 *2257+30410.26*4+67388.19*3=

657202.16

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