I\'m interested in building a model that predicts the Fair Market Value (in thou

Question

I'm interested in building a model that predicts the Fair Market Value (in thousands of dollars). That is, Fair Market Value is the dependent variable. The correlations between Fair Market Value and the candidate predictors are shown below: Which X variable will be the first variable in a stepwise model? That is which X variable best explains Y if only 1 X variable is used? Age Property Size (acres) Baths Rooms House Size (square feet) A regression model built to estimate the fair market value of a certain class of homes contained two X variables - Property Size in acres and House Size in square feet. Part of the output is shown below: What is the estimated fair market value for a home with 1, 700 square feet that is situated on a 0.40 acre lot?

Explanation / Answer

Ans:

21)House size(square feet),as highest correlation cofficient.

22)Regression eqn:

Fair market value(y)=148.94+278.49x1+0.08x2

when x1=0.4,x2=1700

y=148.94+278.49*0.4+0.08*1700=396.3

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