Question

A realty company in Phoenix, Arizona is interested in analyzing how the square footage (Sqft), and number of bedrooms (Bedrooms) influence a home’s sales price in dollars (Price). They collected data on homes that recently sold using Truilia.com and Zillow.com and used it to obtain the following estimated regression equations:

Model 1:  Priceˆ=44328.28 + 67.12Sqft + 5,589.20Bedrooms, Se = 4,450, R² = 0.25

Model 2: ln(Price)ˆ=11.02 + 0.0005Sqft + 0.0910 Bedrooms, Se =0.276 , R² = 0.288

Model 3: Priceˆ=77,958.20+8,952ln(Sqft)+7,588.99Bedrooms,Se = 4,450, R² = 0.29

Predict the sales price of a house in Phoenix that is 1,500 square feet and has 2 bedrooms using each of the 3 models. Round your answer to 2 decimals.

Model 1 Prediction:

Model 2 Prediction:

Model 3 Prediction:

Answer 1