Data were collected from a random sample of 350 home sales from a community in 2003. Let Price denote the selling price (in $1,000), BDR denote the number of bedrooms, Bath denote the number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square feet), Age denote the age of the house (in years), and Poor denote a binary variable that is equal to 1 if the condition of the house is reported as "poor." An estimated regression yields Price 110.9+0.451BDR+21.8Bath +0.145Hsize + 0.003Lsize +0.084Age-45.4Poor, R2 = 0.67, SER=38.6. Suppose that a homeowner converts part of an existing family room in her house into a new bathroom. What is the expected increase in the value of the house? The expected increase in the value of the house is $. (Round your response to the nearest dollar.) Suppose that a homeowner adds a new bathroom to her house, which increases the size of the house by 93 square feet. What is the expected increase in the value of the house? The expected increase in the value of the house is $ (Round your response to the nearest dollar.) What is the loss in value if a homeowner lets his house run down so that its condition becomes "poor"? The loss is $ (Round your response to the nearest dollar.) Compute the R2 for the regression. The R² for the regression is ☐ (Round your response to three decimal places.)
Data were collected from a random sample of 350 home sales from a community in 2003. Let Price denote the selling price (in $1,000), BDR denote the number of bedrooms, Bath denote the number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square feet), Age denote the age of the house (in years), and Poor denote a binary variable that is equal to 1 if the condition of the house is reported as "poor." An estimated regression yields Price 110.9+0.451BDR+21.8Bath +0.145Hsize + 0.003Lsize +0.084Age-45.4Poor, R2 = 0.67, SER=38.6. Suppose that a homeowner converts part of an existing family room in her house into a new bathroom. What is the expected increase in the value of the house? The expected increase in the value of the house is $. (Round your response to the nearest dollar.) Suppose that a homeowner adds a new bathroom to her house, which increases the size of the house by 93 square feet. What is the expected increase in the value of the house? The expected increase in the value of the house is $ (Round your response to the nearest dollar.) What is the loss in value if a homeowner lets his house run down so that its condition becomes "poor"? The loss is $ (Round your response to the nearest dollar.) Compute the R2 for the regression. The R² for the regression is ☐ (Round your response to three decimal places.)
Algebra: Structure And Method, Book 1
(REV)00th Edition
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Chapter2: Working With Real Numbers
Section2.3: Rules For Addition
Problem 8P
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Transcribed Image Text:Data were collected from a random sample of 350 home sales from a community in 2003. Let Price denote the selling price (in $1,000), BDR denote the number of bedrooms, Bath denote the
number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square feet), Age denote the age of the house (in years), and Poor denote a binary variable
that is equal to 1 if the condition of the house is reported as "poor."
An estimated regression yields
Price 110.9+0.451BDR+21.8Bath +0.145Hsize + 0.003Lsize
+0.084Age-45.4Poor, R2 = 0.67, SER=38.6.
Suppose that a homeowner converts part of an existing family room in her house into a new bathroom. What is the expected increase in the value of the house?
The expected increase in the value of the house is $. (Round your response to the nearest dollar.)
Suppose that a homeowner adds a new bathroom to her house, which increases the size of the house by 93 square feet. What is the expected increase in the value of the house?
The expected increase in the value of the house is $ (Round your response to the nearest dollar.)
What is the loss in value if a homeowner lets his house run down so that its condition becomes "poor"?
The loss is $ (Round your response to the nearest dollar.)
Compute the R2 for the regression.
The R² for the regression is ☐ (Round your response to three decimal places.)
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