Multiple regression equation for list price of homes

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Reference no: EM1320759

Q1) A multiple regression equation for list price of homes in certain community in USA is=170,000 -850 X₁ + 28,000 X₂, where X₁signifies age in years and X₂signifies number of rooms. If prospective purchaser is interested in the older, well-constructed home about 55 years old with 10 rooms, what would be predicted list price in that community? (Illustrate your procedure.)

Q2) It is known that if correlation is not important, the best predictor for dependent variable is not? From regression equation. Rather it is the mean of sample values of dependent variable. Compute the best predicted value for following problem? Assume the regression line for 8 pairs of data linking cost of advertising Suppose the products are heavy duty tractors. If r_xy= 0.647 and 60 tractors sold, how many tractors would be sold if $5000 were spent on advertising? (Suppose that $5000 is in scope of the sampled data.) Illustrate your method.

Reference no: EM1320759

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