# Economics - Regression Equation

Scenario 2: Below is a multiple regression in which the dependent variable is market value of houses and the independent variables are the age of the house and square footage of the house. The regression was estimated for 42 houses.

SUMMARY OUTPUT

Regression Statistics

Multiple R 0.745495

R Square 0.555762

Adjusted R Square 0.532981

Standard Error 7211.848

Observations 42

ANOVA

df SS MS F Significance F

Regression 2 2537650171 1.27E+09 24.39544 1.3443E-07

Residual 39 2028419591 52010759

Total 41 4566069762

Coefficients Standard t Stat P-value Lower95%Upper95%

Error

Intercept 47331.38 13884.34664 3.408974 0.001528 19247.6673 75415.0958

House Age -825.161 607.3128421 -1.35871 0.182046 -2053.5662 403.243744

SquareFeet 40.91107 6.696523994 6.109299 3.65E-07 27.3660835 54.4560534

Refer to Scenario 2 above. What is the estimated regression equation for determining the market value of houses?

Refer to Scenario 2. If the age of a house increases by 1 year given that the square feet is held constant, what is the impact on the house's market value?

© BrainMass Inc. brainmass.com October 9, 2019, 10:56 pm ad1c9bdddfhttps://brainmass.com/economics/regression/economics-regression-equation-237998

#### Solution Summary

A Complete, Neat and Step-by-step Solution is provided.