A house in a nearby neighborhood has 3 bedrooms and 2000 square feet of living area. Use the following multiple regression model to answer parts a through c below. Price = 19,719.46 - 8593.22Bedrooms + 127.69Living Area a) Find the price that this model estimates. (Round to the nearest dollar as needed.) b) The house just sold for $332,000. Find the residual corresponding to this house. (Round to the nearest dollar as needed.) c) What does that residual say about this transaction? A. The house sold for about $82,700 less than the estimate. B. The house sold for about $166,600 more than the estimate. O C. The house sold for about $82,700 more than the estimate. D. The house sold for about $166,600 less than the estimate.

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A house in a nearby neighborhood has 3 bedrooms and 2000 square feet of living area. Use the following multiple regression model to answer parts a through c
below.
Price = 19,719.46 - 8593.22Bedrooms + 127.69Living Area
a) Find the price that this model estimates.
$
(Round to the nearest dollar as needed.)
b) The house just sold for $332,000. Find the residual corresponding to this house.
(Round to the nearest dollar as needed.)
c) What does that residual say about this transaction?
O A. The house sold for about $82,700 less than the estimate.
O B. The house sold for about $166,600 more than the estimate.
O C. The house sold for about $82,700 more than the estimate.
O D. The house sold for about $166,600 less than the estimate.
Transcribed Image Text:A house in a nearby neighborhood has 3 bedrooms and 2000 square feet of living area. Use the following multiple regression model to answer parts a through c below. Price = 19,719.46 - 8593.22Bedrooms + 127.69Living Area a) Find the price that this model estimates. $ (Round to the nearest dollar as needed.) b) The house just sold for $332,000. Find the residual corresponding to this house. (Round to the nearest dollar as needed.) c) What does that residual say about this transaction? O A. The house sold for about $82,700 less than the estimate. O B. The house sold for about $166,600 more than the estimate. O C. The house sold for about $82,700 more than the estimate. O D. The house sold for about $166,600 less than the estimate.
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