Answered: Predict the sales price of a 1900…

Name: The trend in home building in recent years has been to emphasize open
Uploaded: 2024-03-20T07:06:27.000Z
Channel: Bartleby
Description: The trend in home building in recent years has been to emphasize open spaces and great rooms, rather than smaller living rooms and family rooms. A builder of speculative homes in the college community of Oxford, Ohio, had been building such homes, bu

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

The trend in home building in recent years has been to emphasize open spaces and great rooms, rather than smaller living rooms and family rooms. A builder of speculative homes in the college community of Oxford, Ohio, had been building such homes, but his homes had been taking many months to sell and had been selling for substantially less than the asking price. In order to determine what types of homes would attract residents of the community, the builder contacted a statistician at a local college. The statistician went to a local real estate agency and obtained the data contained in file OxHome. This data includes the sales price (measured in thousand dollars), square footage, number of rooms, number of bedrooms, and age for each of 60 single-family residences recently sold in the community.

Using this data, a regression model was built to predict the sales price of houses in this community. The regression equation from the model is:

sales price (thousand dollars) = 19.5 + 0.1079 square feet + 11.88 rooms – 25.73 bedrooms – 0.721 age

Predict the sales price of a 1900 square feet, 10-year old house that has 7 rooms, 3 of which are bedrooms.

Hint: Choose the closest answer since there will be roughly $20 difference between the predictions done via Minitab versus manual calculation.

A) $223,291

B) $175,332

C) $298,426

D) $113,045

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Data Collection, Sampling Methods, and Bias$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc