4-22 The following data give the selling price, square footage, number of bedrooms, and age of houses that have sold in a neighborhood in the past 6 months. Develop three regression models to pre- dict the selling price based upon each of the other factors individually. Which of these is best? SELLING PRICE ($) 84,000 79,000 91,500 120,000 127,500 132,500 145,000 164,000 155,000 168,000 172,500 174,000 175,000 177,500 184,000 195,500 195,000 SQUARE FOOTAGE 1,670 1,339 1,712 1,840 2,300 2,234 2,311 2,377 2,736 2,500 2,500 2,479 2,400 3,124 2,500 4,062 2,854 BEDROOMS 2 2 3 3 3 3 3 3 4 3 4 3 3 4 3 AGE (YEARS) 30 25 30 40 18 30 19 7 10 1 3 3 1 2 10 3
4-22 The following data give the selling price, square footage, number of bedrooms, and age of houses that have sold in a neighborhood in the past 6 months. Develop three regression models to pre- dict the selling price based upon each of the other factors individually. Which of these is best? SELLING PRICE ($) 84,000 79,000 91,500 120,000 127,500 132,500 145,000 164,000 155,000 168,000 172,500 174,000 175,000 177,500 184,000 195,500 195,000 SQUARE FOOTAGE 1,670 1,339 1,712 1,840 2,300 2,234 2,311 2,377 2,736 2,500 2,500 2,479 2,400 3,124 2,500 4,062 2,854 BEDROOMS 2 2 3 3 3 3 3 3 4 3 4 3 3 4 3 AGE (YEARS) 30 25 30 40 18 30 19 7 10 1 3 3 1 2 10 3
Chapter1: Introducing The Economic Way Of Thinking
Section1.A: Applying Graphics To Economics
Problem 1SQ
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Transcribed Image Text:4-22 The following data give the selling price, square
footage, number of bedrooms, and age of houses
that have sold in a neighborhood in the past
6 months. Develop three regression models to pre-
dict the selling price based upon each of the other
factors individually. Which of these is best?
SELLING SQUARE
PRICE ($) FOOTAGE
84,000
79,000
91,500
120,000
127,500
132,500
145,000
164,000
155,000
168,000
172,500
174,000
175,000
177,500
184,000
195,500
195,000
1,670
1,339
1,712
1,840
2,300
2,234
2,311
2,377
2,736
2,500
2,500
2,479
2,400
3,124
2,500
4,062
2,854
BEDROOMS
2
2
3
3
3
3
3
3
4
3
334343
AGE
(YEARS)
30
25
30
40
18
30
19
7
10
1
3
3
1
0
2
10
3
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