A realtor in Arlington, Massachusetts, is analyzing the relationship between the
ID: 3314459 • Letter: A
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
822,000
2,500
4
2.5
713,000
2,400
3
3.0
689,000
2,200
3
2.5
685,000
2,716
3
3.5
838,500
3,281
4
2.5
432,692
1,891
3
1.5
620,000
2,436
4
3.5
718,056
2,567
3
2.5
585,000
1,947
3
1.5
795,000
3,033
4
3.5
569,000
3,262
4
2.0
546,000
1,792
3
2.0
540,000
1,488
3
1.5
537,000
2,907
3
2.5
344,000
1,301
3
1.0
738,111
2,531
4
2.5
714,000
2,418
4
3.0
693,000
2,369
4
3.0
463,000
1,714
3
2.0
457,000
1,650
3
2.0
631,400
2,359
4
3.0
435,000
1,500
3
1.5
431,700
1,896
2
1.5
414,000
1,182
2
1.5
401,500
1,152
3
1.0
319,200
1,106
3
1.0
253,333
896
3
1.0
475,000
1,590
3
2.0
375,900
2,275
5
1.0
620,000
1,675
3
2.0
459,375
1,590
3
2.0
534,750
2,147
3
3.0
247,500
1,022
2
1.0
247,500
1,099
2
1.0
307,500
850
1
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 2,188-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
a) The estimated model Price = 111454.76 + 107.67*Sqft +13699.54*Beds + 82074.78*Baths
b) interpretation- For every additional square foot, the predicted price of a home increases by $107.67, holding number of bedrooms and bathrooms constant.
c) Predicted price =111454.76 + 107.67*2078 +13699.54*2 + 82074.78*1 =$444666.88
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