One of the many variables thought to be an important predictor of appraised valu

Question

One of the many variables thought to be an important predictor of appraised value of the houses is number of rooms in any house. Say an appraiser decides to fit the simple linear regression model, E(y) = 0 + |x, where y-appraised value of the house (in thousands of dollars) and x = number of rooms. Using data collected for a sample of 68 houses, the following results were obtained y = 74.50 + 19 63x Give a practical interpretation of the estimate of the slope of the least squares line 0 A. For a house with 0 rooms, the estimated appraised value is $74,500. 0 B. For each additional dollar of appraised value, the number of rooms in the house is estimated to increase by 19.63 ° C. The appraised value of the house is estimated to increase by $19,630 for each additional room in the house. 0 D. For each additional room in the house, the appraised value is estimated to increase by $74,500.

Explanation / Answer

here option C is correct. the appraisal value of the house is estimated to increase by $19630 for each additional room in the house

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