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Regression Analysis

The question is enclosed. Thanks again for your help!

You have run a regression model to try to predict house prices (in thousands of dollars) as a function of the size (in square feet), the number of bedrooms, and whether the house has a pool (1 if yes; 0 if no). Partial output from the solution is shown below.
Multiple R 0.777831588
R Square 0.605021979

Coefficients Standard Error t Stat P-value
Intercept 69.33140041 28.6423498 2.42059052 0.017882819
Size 0.048910361 0.011608397 4.213360605 6.85142E-05
Bedrooms 11.15663028 6.568419475 1.69852585 0.093499259
Pool? 30.85555797 6.260594952 4.928534462 4.73248E-06

a) How good a model is this? Explain.
b) What price would the model predict for a house that was 3,000 square feet in size, had 4 bedrooms, but no pool?


Solution Summary

The solution provides step by step method for the calculation of regression analysis.