Call: lm(formula = priceM2 - age + distMet + latitude + longitude, data = RealEstate) Residuals: 30 10 Median -33.069 -5.343 -1.050 4.410 71.305 Min Маx Coefficients: Estimate -3.650e+03 Std. Error 6.478e+03 t value -0.563 -6.221 Pr (>|t|) 0.573 (Intercept) 1.22e-09 *** 9.88e-16 *** 1.13e-08 *** 0.621 -2.526e-01 4.060e-02 Age distMet -5.875e-03 7.027e-04 -8.361 latitude 2.714e+02 4.655e+01 5.830 longitude -2.532e+01 5.120e+01 -0.495 Signif. codes: 0 ***** 0.001 '*** 0.01 * 0.05 '.' 0.1''1 Residual standard error: 9.355 on 409 degrees of freedom Multiple R-squared: 0.5319, Adjusted R-squared: 0.5273 F-statistic: 116.2 on 4 and 409 DF, p-value: < 2.2e-16 f) A new variable is added to the model which is longitude of the residence. Summary output is given above. What do you think of the new model? Do you think this variable should be added to the model,

Q: could you explain the steps you took to get there ?

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Confidence Intervals

When we calculate intervals in probability and statistics, it can be simply termed as finding out a confidence interval. The confidence interval is usually calculated from the data set which is observed. The value of the parameter that needs to be calculated is present here only.