The file Housedata.xlsx (pasted below) gives the square footage and sales prices for several houses in Bellevue, Washington. Use this file to answer the following questions (13-15): Square Footage 2000 2200 2400 3000 3200 3600 2900 Value 238139.4 259712 300953.7 369965.7 340091.3 405425 345131 13. You plan to build a 500-square-foot addition to your house. How much do you think your home value will increase as a result? 14. What percentage of the variation in home value is explained by the variation in the house size? 15. A 3,000-square-foot house is listed for $500,000. Is this price out of line with typical real estate values in Bellevue? What might cause this discrepancy?

Practical Management Science
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Chapter2: Introduction To Spreadsheet Modeling
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Linear Regression
The file Housedata.xlsx (pasted below) gives the square footage and sales prices for several houses in
Bellevue, Washington. Use this file to answer the following questions (13-15):
Value
Square Footage
2000
2200
2400
3000
3200
3600
2900
238139.4
259712
300953.7
369965.7
340091.3
405425
345131
13. You plan to build a 500-square-foot addition to your house. How much do you think your home
value will increase as a result?
14. What percentage of the variation in home value is explained by the variation in the house size?
15. A 3,000-square-foot house is listed for $500,000. Is this price out of line with typical real estate
values in Bellevue? What might cause this discrepancy?
Transcribed Image Text:Linear Regression The file Housedata.xlsx (pasted below) gives the square footage and sales prices for several houses in Bellevue, Washington. Use this file to answer the following questions (13-15): Value Square Footage 2000 2200 2400 3000 3200 3600 2900 238139.4 259712 300953.7 369965.7 340091.3 405425 345131 13. You plan to build a 500-square-foot addition to your house. How much do you think your home value will increase as a result? 14. What percentage of the variation in home value is explained by the variation in the house size? 15. A 3,000-square-foot house is listed for $500,000. Is this price out of line with typical real estate values in Bellevue? What might cause this discrepancy?
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