4-22 The following data give the selling price, square footage, number of bedrooms, and age of houses that have sold in a neighborhood in the past 6 months. Develop three regression models to pre- dict the selling price based upon each of the other factors individually. Which of these is best? SELLING PRICE ($) 84,000 79,000 91,500 120,000 127,500 132,500 145,000 164,000 155,000 168,000 172,500 174,000 175,000 177,500 184,000 195,500 195,000 SQUARE FOOTAGE 1,670 1,339 1,712 1,840 2,300 2,234 2,311 2,377 2,736 2,500 2,500 2,479 2,400 3,124 2,500 4,062 2,854 BEDROOMS 2 2 3 3 3 3 3 3 4 3 4 3 3 4 3 AGE (YEARS) 30 25 30 40 18 30 19 7 10 1 3 3 1 2 10 3

4-22 The following data give the selling price, square footage, number of bedrooms, and age of houses that have sold in a neighborhood in the past 6 months. Develop three regression models to pre- dict the selling price based upon each of the other factors individually. Which of these is best? SELLING PRICE ($) 84,000 79,000 91,500 120,000 127,500 132,500 145,000 164,000 155,000 168,000 172,500 174,000 175,000 177,500 184,000 195,500 195,000 SQUARE FOOTAGE 1,670 1,339 1,712 1,840 2,300 2,234 2,311 2,377 2,736 2,500 2,500 2,479 2,400 3,124 2,500 4,062 2,854 BEDROOMS 2 2 3 3 3 3 3 3 4 3 4 3 3 4 3 AGE (YEARS) 30 25 30 40 18 30 19 7 10 1 3 3 1 2 10 3

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 1E

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