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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?

Solution Summary

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