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Multiple Regression for List Prices of Homes in the US

4. (5) A multiple regression equation for the list price of homes in a certain community in the USA is Y'=170,000 - 850X_1 + 28,000X_2, where X_1 represents age in years and represents number of rooms.

If a prospective buyer is interested in an older, well-constructed home about 55 years old with 10 rooms, what would be the predicted list price in that community? (Show your procedure.)

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Age in years = X1 = 55 yrs

Number of rooms = X2 = 10 rooms

Predicted ...

Solution Summary

Multiple regression for a prospective buyer in a community is analyzed. The solution determines the predicted list price in that community.