A real estate agent found that the value of a seaside mansio

A real estate agent found that the value of a seaside mansion in thousands of dollars can be estimated by 8.36x - 0.209y + 47.5, where x is the number of acres the mansion sits on and y is the number of rooms in the mansion. Predict the value of a mansion that has 345 acres with 18 rooms. The values of the mansion is $ .

Solution

We just have to sub the values of params into the regression eqn given :

The value of mansion that has 345 acres with 18 rooms is :

=8.36*345 -.209*18+47.5
=2927.938

The value of the mansion is therefore, $2927.938 *1000 or $2,927,938