Question

The following data was collected to explore how the number of square feet in a house, the number of bedrooms, and the age of the house affect the selling price of the house. The dependent variable is the selling price of the house, the first independent variable (x1) is the square footage, the second independent variable (x2) is the number of bedrooms, and the third independent variable (x3) is the age of the house.

Effects on Selling Price of Houses

Square Feet	Number of Bedrooms	Age	Selling Price
2963	5	14	304500
2931	5	10	293200
2805	5	10	292300
2647	4	9	238700
1976	4	8	201400
1775	4	7	162000
1410	4	6	128100
1099	4	5	114600
1056	3	5	107400

Step 2 of 2 :  

Determine if a statistically significant linear relationship exists between the independent and dependent variables at the 0.05 level of significance. If the relationship is statistically significant, identify the multiple regression equation that best fits the data, rounding the answers to three decimal places. Otherwise, indicate that there is not enough evidence to show that the relationship is statistically significant.

Answer 1

The statistical software output for this problem is:

Hence,

The regression equation will be:

Selling price = -50823.385 + 14856.021 Bedrooms + 3540.549 Age + 78.935 Sqft