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Following is a multiple regression in which the dependent variable is market value of houses and the independent variables are the age of the house and square footage of the house. The regression was estimated for 42 houses.
SUMMARY OUTPUT
Regression StatisticsMultiple R 0.745495R Square 0.555762Adjusted R Square 0.532981Standard Error 7211.848Observations 42
ANOVAdf SS MS F Significance FRegression 2 2537650171 1.27 E+09 24.39544 1.3443 E-07Residual 39 2028419591 52010759Total 41 4566069762
Coefficients Standard t Stat P-value Lower 95% Upper 95%ErrorIntercept 47331.38 13884.34664 3.408974 0.001528 19247.6673 75415.0958House Age -825.161 607.3128421 -1.35871 0.182046 -2053.5662 403.243744Square Feet 40.91107 6.696523994 6.109299 3.65 E-07 27.3660835 54.4560534
Refer to Scenario 2 above. What is the estimated regression equation for determining the market value of houses?
Refer to Scenario 2. If the age of a house increases by 1 year given that the square feet is held constant, what is the impact on the house's market value?
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