Calculate r2 and explain the goodness of fit of the model

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You are given a data file with the title 'Data.xlsx'. The first column is the price, P rice, of a house measured in pounds, the second column is the number of bedrooms, Rooms, in each house, and the third column is the floor space of the house, Sqfeet, measured in square feet. You want to study whether the number of bedrooms and the size of the house play an important role in determining the house prices.

A) Build a multiple regression model for Price, using Rooms and Sqfeet as regressors. Obtain the ordinary least squares (OLS) estimates for the parameters, and discuss whether Rooms or Sqfeet has a significant effect on the sales, at the 95% significance level.

B) Calculate the residual sum of squares RSS, and the total sum of squares TSS. Calculate R2 and explain the goodness of fit of the model.

Reference no: EM132999592

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