Question

A realtor in Arlington, Massachusetts, is analyzing the relationship between the sale price of a home (Price in $), its square footage (Sqft), the number of bedrooms (Beds), and the number of bathrooms (Baths.) She collects data on 36 sales in Arlington in the first quarter of 2009 for the analysis. A portion of the data is shown in the accompanying table.

Price	Sqft	Beds	Baths
840000	2768	4	3.5
822000	2500	4	2.5
713000	2400	3	3.0
689000	2200	3	2.5
737692	2925	5	2.0
645000	2524	3	2.0
432692	1891	3	1.5
454667	1786	3	2.5
587500	2100	3	1.5
585000	1947	3	1.5
583000	2224	3	2.5
569000	3262	4	2.0
764400	2509	4	3.0
540000	1488	3	1.5
732273	3964	4	3.5
516000	1951	4	2.0
738111	2531	4	2.5
714000	2418	4	3.0
693000	2369	4	3.0
463000	1714	3	2.0
639800	2310	4	3.0
451000	1685	3	2.0
435000	1500	3	1.5
431700	1896	2	1.5
414000	1182	2	1.5
602250	1728	4	2.0
319200	1106	3	1.0
253333	896	3	1.0
285000	954	2	1.0
375900	2275	5	1.0
372000	1005	2	1.0
275625	954	2	1.0
356500	1431	2	2.0
412500	1703	3	2.0
247500	1099	2	1.0
307500	850	1	1.0

a. Estimate the model Price = Bo + B1 Sqft + B2 Beds + B3 Baths + E. (Round Coefficients to 2 decimal places.)

Coefficients : Intercepts = ________; Sqft = ________; Beds = ________; Baths = ________

b. Predict the price of a 2,379 square-foot home with four bedrooms and two bathrooms. (Round coefficient estimates to at least 4 decimal places and final answer to the nearest whole number.)

Price^ = $________

Answer 1

We can use here Excel for Multiple regression equation

Step 1) Enter data in Excel .

Step 2) Data >>Data analysis >>Regression >>Select y(Dependent variable data column) and x ( all three column data of independent variables) values separately >>Ok

Therefore, we have multiple regression equation is ,

a)

Price = 53344.52 + 77.14*Sqft + 29550.60*Beds + 116978.29* Baths + E.

b) Substitute sqft = 2379 , Beds = 4 and Baths =2 in multiple regression

=589019.56

Price = $589020(Approximately)