12 Every additional square foot of the house will a increas

12. Every additional square foot of the house will ____________________________________.

a) increase the average selling price by $581

b) decrease the average selling price by $581

c) increase the average selling price by $87

d) decrease the average selling price by $28

SUMMARY OUTPUT Rearession Statistics MultipleR R Square Adjusted R Square Standard Error Observations 0.8486 36,009.01 ANOVA Significance F 0.0022 MS Regression Residual Total 36,709,265,905.70 14 50,972,400,000.00 Coefficients Standard Error t Stat P- Lower 95% Upper 95% Intercept Age Living Area Bedrooms 108,597.3721 580.6870 86.8282 31,261.9127 101,922.3333 2,092.4981 27.6994 11,006.8696 value 0.3095 0.7865 0.0095 0.0161

Solution

Coefficient of variable Living Area = 86.8282 = 87

This means, for every unit increase in Living Area, the average selling price will increase by $87.

Answer: c) increase the average selling price by $87