Chapter 15, Problem 31PS

Hemlock Farms is a community located in the Pocono Mountains area of eastern Pennsylvania. The file HemlockFarms contains information on homes that were recently for sale. The variables included were

List Price-Asking price of the house

Hub Tub- Whether the house has a hot tub, with $0=\text{No}\text{and}\text{1}=\text{Yes}$

Lake View- Whether the house has a lake view, with $0=\text{No}\text{and}\text{1}=\text{Yes}$

Bathrooms-Numbers of bathrooms

Bathrooms-Numbers of bathrooms

Loft/Den-Whether the house has a loft or den, with $0=\text{No}\text{and}\text{1}=\text{Yes}$

Finished basement-Whether has house has a finished basement, with $0=\text{No}\text{and}\text{1}=\text{Yes}$

Acres- Number of acres for the property

Develop the most appropriate multiple regression model to predict the asking price. Be sure to perform a through residual analysis. In addition, provide a detailed explanation of your results.