Reference no: EM132409101
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
560,000 1,845 3 2.0
632,308 1,923 3 2.0
831,833 2,800 4 3.0
689,000 2,200 3 2.5
685,000 2,716 3 3.5
774,000 3,029 5 1.0
432,692 1,891 3 1.5
620,000 2,436 4 3.5
783,333 2,800 4 2.0
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
a.Estimate the model Price = β0 + β1Sqft + β2Beds + β3Baths + ε. (Round Coefficients and Standard Error answers to 2 decimal places. Round t Stat and p-value answers to 4 decimal places.)
Coefficients
Intercept =
Sqft =
Beds =
Baths =
b-1. Interpret the coefficient of Sqft.
-For every additional square foot, the predicted price of a home increases by $123.11.
-For every additional square foot, the predicted price of a home increases by $123.11, holding number of bedrooms and bathrooms constant.
-For every additional square foot, the predicted price of a home increases by $123.11, holding square foot, number of bedrooms and bathrooms constant.
b-2. Interpret the coefficient of Beds.
-For every additional bedroom, the predicted price of a home increases by $28,115.31
-For every additional bedroom, the predicted price of a home increases by $28,115.31, holding number of square feet and bathrooms constant.
-For every additional bedroom, the predicted price of a home increases by $28,115.31, holding square foot, number of bedrooms and bathrooms constant.
b-3. Interpret the coefficient of Baths.
-For every additional bathroom, the predicted price of a home increases by $69,668.00.
-For every additional bathroom, the predicted price of a home increases by $69,668.00, holding number of square feet and bedrooms constant.
-For every additional bathroom, the predicted price of a home increases by $69,668.00, holding square foot, number of bedrooms and bathrooms constant.
c. Predict the price of a 2,191-square-foot home with four bedrooms and three bathrooms. (Round intermediate coefficient values to 2 decimal places. Round your answer to 2 decimal places.)