2. A real estate expert wanted to find the relationship between the sale price of houses and various characteristics of the houses. He collected data on five variables, recorded in the table, for 12 houses that were sold recently. The five variables are: Price: Sale price of a house in thousands of dollars. Size of the lot in acres. Lot Size: Living Area: Living area in square feet. Age: Type of house: town house (T) or Villa (V) Age of a house in years. Living Area Туре of house Price Lot Size Age a500

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 27PPS
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2. A real estate expert wanted to find the relationship between the sale price of houses
and various characteristics of the houses. He collected data on five variables,
recorded in the table, for 12 houses that were sold recently. The five variables are:
Sale price of a house in thousands of dollars.
Size of the lot in acres.
Price:
Lot Size:
Living Area: Living area in square feet.
Age:
Type of house: town house (T) or Villa (V)
Age of a house in years.
Living
Area
Price
Lot Size
Age
Туре
of
house
255
1.4
2500
8
T
178
0.9
2250
12
263
1.8
2900
127
0.7
1800
24
305
2.6
3200
10
164
1.2
2400
18
245
2.1
2700
9
146
1.1
2050
28
287
2.8
2850
13
189
1.6
2600
9
211
1.7
2300
8.
123
0.5
1700
11
a) Find the general regression equation
b) Which independent variables are linearly related to price?
c) How is the fit of the model?
E BBBB BB>>}>> >{
Transcribed Image Text:2. A real estate expert wanted to find the relationship between the sale price of houses and various characteristics of the houses. He collected data on five variables, recorded in the table, for 12 houses that were sold recently. The five variables are: Sale price of a house in thousands of dollars. Size of the lot in acres. Price: Lot Size: Living Area: Living area in square feet. Age: Type of house: town house (T) or Villa (V) Age of a house in years. Living Area Price Lot Size Age Туре of house 255 1.4 2500 8 T 178 0.9 2250 12 263 1.8 2900 127 0.7 1800 24 305 2.6 3200 10 164 1.2 2400 18 245 2.1 2700 9 146 1.1 2050 28 287 2.8 2850 13 189 1.6 2600 9 211 1.7 2300 8. 123 0.5 1700 11 a) Find the general regression equation b) Which independent variables are linearly related to price? c) How is the fit of the model? E BBBB BB>>}>> >{
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