Problem 4.48 Question The model was developed using recent sales in a particular

Question

Problem 4.48 Question The model was developed using recent sales in a particular neighborhood. The price Y ofthe house is based on the size (square footage =x) of the house. The model is: Y 13,473+37.65x. The coefficlent of correlation for the model is 0.68. b) A 1.960-square-foot house recently sold for $100.000, which is different than the predicted value. This is possible as the forecast represents average value. c) To make this model more realistic, additional quantitative variables that could be included in a multiple regression model are (select the choice that has all the factors that are c quansifiable): A. The age of the house, the number of bedrooms, and the size of the lot B. The size of the lot, the number of bedrooms, and the layout of the rooms. d) For the given model, the value of the coefficient of determination = | | (round your response to three domar places

Explanation / Answer

Since answers to options a, b and c are already filled in the blanks given, I assume only answer to question d is required. So here goes the solution:

d) In the given question, we are given that coefficient of correlation is 0.68. Which means we have the R-value as 0.68

Now, Coefficient of determination(R2 )is the square of the coefficient of correlation (R).

Therefore, value of coefficient of determination = 0.68*0.68 = 0.462

Please note that that the coefficient of determination explains the percentage of variation of Y explained by the independent variable x of the regression equation.

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