Determine residential housing prices

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Reference no: EM131839820

John? Howard, a? Mobile, Alabama, real estate? developer, has devised a regression model to help determine residential housing prices in South Alabama. The model was developed using recent sales in a particular neighborhood. The price? (Y) of the house is based on the size? (square footage? = X) of the house. The model? is:

Y? = 13 comma 97313,973 ?+ 38.5038.50X.

The coefficient of correlation for the model is 0.630.63.

?a) Using the above? model, the selling price of a house that is 1 comma 9601,960 square feet? = ?$ nothing ?(enter a whole ?number).

?b) A 1 comma 9601,960?-square-foot house recently sold for ?$102 comma 000102,000?, which is different than the predicted value. This is (possible not, possible) as the forecast represents (average, actual) 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? quantifiable):

A. The age of the? house, the location of the? house, and the size of the garage.

B. The size of the? lot, the number of? bedrooms, and the layout of the rooms.

C. The age of the? house, the number of? bedrooms, and the size of the lot.

Reference no: EM131839820

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