A regression analysis of 117 homes for sale produced following model, where pric

Question

A regression analysis of 117 homes for sale produced following model, where price is in thousands of dollars and size is in square feet. Price = 47.87 + 0.066(Size) a) Explain what the slope of the line says about housing prices and house size. b) What price would you predict for a 2500-square-foot house in this marker? c) A real estate agent shows a potential buyer a 1200-square-foot house, saying that he asking price is exist6000 less than what one would expect to pay for a house of this size. What is the asking price, and what is exist6000 called? a) Explain what the slope of the line says about housing prices and house size. A. For every additional square foot of area of a house, the price is predicted to increase by exist66. B. For every exist1increase in price of a house, size is predicted to increase by 66 square feet. C. For every exist1000 increase in price of a house, the size is predicted to increase by 0.066 square feet. D. For every additional square foot of area of a house, the price is predicted to increase by exist0.066. b) What price would you predict for a 2500-square-foot house in this market?

Explanation / Answer

b) Given Size = 2500

The predict Price = 47.87 + 0.066(2500) = 212.87 thousands of dollars

or = 212,870 dollars

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