Using a Regression Model: Predictive Equations In Home Prices
Not what you're looking for?
House Selling Price Square Footage Bedrooms Age
1 $64,000 1,670 2 30
2 $59,000 1,339 2 25
3 $61,500 1,712 3 30
4 $79,000 1,840 3 40
5 $87,500 2,300 3 18
6 $92,500 2,234 3 30
7 $95,000 2,311 3 19
8 $113,000 2,377 3 7
9 $115,000 2,736 4 10
10 $138,000 2,500 3 1
11 $142,500 2,500 4 3
12 $144,000 2,479 3 3
13 $145,000 2,400 3 1
14 $147,500 3,124 4 0
15 $144,000 2,500 3 2
16 $155,500 4,062 4 10
17 $165,000 2,854 3 3
Average $114,588 2,408 3 14
Use the data and develop a regression model to predict selling price based on the square footage, number of bedrooms, and age. Use this to predict the selling price of a 10-year-old, 2,000-square-foot house with 3 bedrooms.
1) State the linear equation.
2) Explain the overall statistical significance of the model.
3) Explain the statistical significance for each independent variable in the model
4) Interpret the Adjusted R2.
5) Is this a good predictive equation(s)? Which variables should be excluded (if any) and why? Explain.
Purchase this Solution
Solution Summary
The Solution uses a regression model to predict home prices.
Education
- MBA, Merage School of Business, Univ of Cal, Irvine
- BA, Univ of Cal, Irvine
Recent Feedback
- "Thank you so much for your help, it was very helpful to see how you did it in excel. Thanks again!"
- "Awesome review. Thank you!!!!!"
- "Wow - Amazing - Thanks"
- "Thanks"
- "Thanks for your help. Your solution helps me understand the problem and its solution."
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.