Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 14 - Review - Case Study - Housing Boom - Page 734: k

Answer

The predicted selling price for the houses with the first zip code is $93674.

Work Step by Step

The predicted selling price is calculated as \[\begin{align} & \text{Price}\left( \text{ }\!\text{\$1000s}\right)\text{}=\text{}-62.406194\text{}+\text{}1046.15\text{Acres}+\text{}-36.170999\text{Bedrooms}\\&+\text{}24.389959\text{Bathrooms}+\text{}0.056220937\text{sq}\text{.ft}.\text{}+\text{}\\&-1.2035753\text{Age}\left(\text{yr}\right)\text{}+\text{}7.0631381\text{rooms}\\&=-62.406194+1046.15\times0.18+-36.170999\times3+\\&24.359959\times1+0.056220937\times1176+-1.2035753\times47\\&\text{+7}\text{.0631381}\times6\\&=93.674\end{align}\] The previous model, that is, without zip codes, is better than the model with zip codes as the predicted selling price with zip code is less than that of without zip code.
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