A real estate company wants to study the relationship between house sales prices and some important predictors of sales prices. Based on data from recently sold homes in the space, the following variables are used in a multiple regression model. y = sales price (in thousands of dollars) x₁ = total floor area (in square feet) x₂ = number of bedrooms x3 = distance to nearest high school (in miles) The estimated model is as follows. =76+0.098x₁ +16x₂-8x3 Answer the questions below for the interpretation of the coefficient of x₂ in this model. (a) Holding the other variables fixed, what is the average change in sales price for each additional bedroom in a house? dollars (b) Is this change an increase or a decrease? O increase O decrease
A real estate company wants to study the relationship between house sales prices and some important predictors of sales prices. Based on data from recently sold homes in the space, the following variables are used in a multiple regression model. y = sales price (in thousands of dollars) x₁ = total floor area (in square feet) x₂ = number of bedrooms x3 = distance to nearest high school (in miles) The estimated model is as follows. =76+0.098x₁ +16x₂-8x3 Answer the questions below for the interpretation of the coefficient of x₂ in this model. (a) Holding the other variables fixed, what is the average change in sales price for each additional bedroom in a house? dollars (b) Is this change an increase or a decrease? O increase O decrease
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.6: Regression And Median-fit Lines
Problem 6PPS
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Transcribed Image Text:A real estate company wants to study the relationship between house sales prices and some important predictors of sales prices. Based on data from recently
sold homes in the space, the following variables are used in a multiple regression model.
y = sales price (in thousands of dollars)
x₁ =
total floor area (in square feet)
x₂ =
number of bedrooms
x3 distance to nearest high school (in miles)
=
The estimated model is as follows.
=76+0.098x₁ +16x₂ - 8x3
Answer the questions below for the interpretation of the coefficient of X₂ in this model.
(a) Holding the other variables fixed, what is the average change in sales price for each
additional bedroom in a house?
dollars
(b) Is this change an increase or a decrease?
O increase
O decrease
X
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