Homework SourseSteve Caples a real estate appraiser in lake Charles Louisia
Steve Caples, a real estate appraiser in lake Charles Louisiana, has developed a regression model to help appraise residential housing in the Lake Charles Area. This model was developed using recently sold homes in a particular neighborhood. The price (Y) of the house is based on the square footage (X) of the house.?The model is?Y = 13,473 + 37.65X?The coefficient of correlation for the model is 0.63?
A.Using the model to predict the selling price of a house that is 18,860 square feet?
B.A house with 18,60 square feet recently sold for $95,000. Explain why this is not what the model predicted.?
C.What is the coefficient of determination for this model
A.Using the model to predict the selling price of a house that is 18,860 square feet?
B.A house with 18,60 square feet recently sold for $95,000. Explain why this is not what the model predicted.?
C.What is the coefficient of determination for this model
Solution
A.
the price should be
13473+37.65*18860= 723552
B
(I think you missed a character. Is it 18600 or 18860 or else?)
Any way if it is 18860, then the estimated price is 723552, which is very different than 95000
C.
the coefficient of determination is coefficient of correlation2, so it is 0.632=0.632
