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: l

Answer

The predicted selling price of a house with the first zip code is $\$93674$. The predicted selling price of a house with the second zip code is $\$183742$.

Work Step by Step

The predicted selling price of a house with the first zip code 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 predicted selling price of a house with the first zip code is calculated as \[\begin{align} & \text{Price}\left( \text{ }\!\!\text{\$1000s}\right)\text{}=\text{}-129.06342\text{}+\text{}686.47832\text{Acres}+\text{}33.920752\text{Bedrooms}\\&+\text{}22.411328\text{Bathrooms}+0.040708429\text{sq}\text{.ft}\text{.}\\&+\text{}0.43652748\text{Age}\left(\text{yr}\right)\text{}+\text{}-0.55397047\text{rooms}\\&=-129.06342+686.47832\times0.18+33.920752\times3+\\&22.411328\times1+0.040708429\times1176+\text{}0.43652748\text{}\times47\\&-0.55397047\times6\\&=183.742\end{align}\]
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