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A house in a nearby neighborhood has 5 bedrooms and 1500 feet of living area. Use the following...

Question:

A house in a nearby neighborhood has 5 bedrooms and 1500 feet of living area. Use the following multiple regression model to answer the questions.

Price = 21,721.95 - 8265.22*(Bedrooms) + 147.62*(Living Area)

a. Find the price that this model estimates.

b. The house just sold for $260,000. Find the residual corresponding to this house.

Multiple Linear Regression Model:

In a multiple linear regression model, the linear mathematical relation between the dependent variable and the independent variables is estimated. The dependent variable is the variable whose variation can be explained by the model, whereas the independent variables are the variables that cause the dependent variable to change.

Answer and Explanation:


a. A multiple linear regression model is used to predict the dependent variable of the house prices using the regression equation. The sample...

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Regression Analysis: Definition & Examples

from Algebra II: High School

Chapter 21 / Lesson 4
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