A house in a nearby neighborhood has 4 bedrooms and 1750 square feet of living ares. Use the following multiple regression model to answer parts a through c below Price=20,788.72-8719.24Bedrooms +91.33Living Area a) Find the price that this model estimates $(Round to the nearest dollar as needed.) b) The house just sold for $195,000. Find the residual corresponding to this house $(Round to the nearest dollar as needed.) c) What does that residual say about this transaction? OA The house sold for about $96,500 less than the estimate OB. The house sold for about $96,500 more than the estimate. OC. The house sold for about $49,300 less than the estimate OD. The house sold for about $49,300 more than the estimate.

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A house in a nearby neighborhood has 4 bedrooms and 1750 square feet of living area. Use the following multiple regression model to answer parts a through c below
Price=20,788.72-8719.24Bedrooms
+91.33Living Area
a) Find the price that this model estimates.
(Round to the nearest dollar as needed.)
b) The house just sold for $195,000. Find the residual coresponding to this house.
$(Round to the nearest dollar as needed.)
c) What does that residual say about this transaction?
OA. The house sold for about $96,500 less than the estimate.
OB. The house sold for about $96,500 more than the estimate.
OC. The house sold for about $49,300 less than the estimate.
OD. The house sold for about $49,300 more than the estimate
Transcribed Image Text:A house in a nearby neighborhood has 4 bedrooms and 1750 square feet of living area. Use the following multiple regression model to answer parts a through c below Price=20,788.72-8719.24Bedrooms +91.33Living Area a) Find the price that this model estimates. (Round to the nearest dollar as needed.) b) The house just sold for $195,000. Find the residual coresponding to this house. $(Round to the nearest dollar as needed.) c) What does that residual say about this transaction? OA. The house sold for about $96,500 less than the estimate. OB. The house sold for about $96,500 more than the estimate. OC. The house sold for about $49,300 less than the estimate. OD. The house sold for about $49,300 more than the estimate
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