3. A sample of 30 houses (data set: House) that were sold in the last year was taken. The value of the house (Y) was estimated. The independent variables included in the analysis were the number of rooms (X₁), the size of the lot (X₂), the number of bathrooms (X3), and a dummy variable (X₁), which equals 0 if the house does not have a garage and equals 1 otherwise. a) Write out the estimated equation. b) Interpret the coefficient on the number of rooms (X₁). c) Interpret the coefficient on the dummy variable (X₂). d) Estimate the value of a house that has 9 rooms, a lot with an area of 7,500, 2 bathrooms, and 2 garages.
3. A sample of 30 houses (data set: House) that were sold in the last year was taken. The value of the house (Y) was estimated. The independent variables included in the analysis were the number of rooms (X₁), the size of the lot (X₂), the number of bathrooms (X3), and a dummy variable (X₁), which equals 0 if the house does not have a garage and equals 1 otherwise. a) Write out the estimated equation. b) Interpret the coefficient on the number of rooms (X₁). c) Interpret the coefficient on the dummy variable (X₂). d) Estimate the value of a house that has 9 rooms, a lot with an area of 7,500, 2 bathrooms, and 2 garages.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 24PPS
Related questions
Question
100%
***PLEASE INCLUDE EXCEL OUTPUT WITH YOUR RESPONSE, THANK YOU!***
Transcribed Image Text:3. A sample of 30 houses (data set: House) that were sold in the last year was taken. The value of the
house (Y) was estimated. The independent variables included in the analysis were the number of rooms
(X₁), the size of the lot (X₂), the number of bathrooms (X3), and a dummy variable (X4), which equals
0 if the house does not have a garage and equals 1 otherwise.
a) Write out the estimated equation.
b) Interpret the coefficient on the number of rooms (X₁).
c) Interpret the coefficient on the dummy variable (X₂).
d) Estimate the value of a house that has 9 rooms, a lot with an area of 7,500, 2 bathrooms, and 2
garages.
Answer:
Transcribed Image Text:Order
ANM in pr
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Value
215000
105000
172000
244000
189900
195500
213500
191500
236500
189000
175900
185000
180400
171500
212000
538000
164000
394432
141000
210000
190000
170000
216000
149000
149900
142000
126000
115000
184000
96000
Rooms
3
2
3
3
3
3
2
2
2
3
3
3
3
2
1
4
4
1
2
3
3
3
3
2
3
3
NNW NW
2
Lot Size
31770
11622
14267
11160
13830
9978
4920
5005
5389
7500
10000
7980
8402
10176
6820
53504
12134
11394
19138
13175
11751
10625
7500
11241
12537
8450
8400
10500
5858
1680
Bathroom Garage
HAFFn in in ev NNS IN
1
N
NUUNNNU P
1.5
1
2.5
2.5
2.5
N
2
2
2
2.5
2.5
2
2.5
1.5
1.5
3.5
2
1.5
1
NNP
2
2
2
2.5
1
1.5
1
NA
1.5
1
1
1
1
1
0
0
0
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
ононе-
1
1
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 8 images
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning