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Prediction using Multiple Regression Analysis

SELLING SQUARE AGE
PRICE($) FOOTAGE BEDROOMS (YEARS)
64,000 1,670 2 30
59,000 1,339 2 25
61,500 1,712 3 30
79,000 1,840 3 40
87,500 2,300 3 18
92,500 2,234 3 30
95,000 2,311 3 19
113,000 2,377 3 7
115,000 2,736 4 10
138,000 2,500 3 1
142,500 2,500 4 3
144,000 2,479 3 3
145,000 2,400 3 1
147,500 3,124 4 0
144,000 2,500 3 2
155,500 4,062 4 10
165,000 2,854 3 3

Use the data and develop a regression model to predict selling price based on the square footage and number of bedrooms. Use this to predict the selling price of a 2,000-square-foot house with 3 bedrooms. Should the number of bedrooms be included in the model? Why or why not?

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Please see the attachment for solution. Thanks.

In excel 2003 select Tools then Data analysis, in that select ...

Solution Summary

The solution explains the construction of a regression model to predict selling price based on the square footage and number of bedrooms.

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