Find the predicted price of a 2 bedroom, 1,000 sq-ft house.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 9, Problem 1E

a.

To determine

Find the predicted price of a 2 bedroom, 1,000 sq-ft house.

a.

Expert Solution

Answer to Problem 1E

The predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

Explanation of Solution

Given info:

The regression model for the price of houses in upstate New York with respect to number of bedrooms and living area is given as:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area.

Calculation:

The given regression equation is:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area

Substitute Bedrooms=2 and Living Area=1,000 in the equation:

Price^=20,986.09−(7483.10×2)+(93.84×1,000)=20,986.09−14,966.2+93,840=99,859.89.

Thus, the predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

b.

To determine

Find the residual corresponding to a house that sold for $135,000.

b.

Expert Solution

Answer to Problem 1E

The residual corresponding to a house that sold for $135,000 is $35,140.11.

Explanation of Solution

Calculation:

Residual:

The residual corresponding to a predictor variable is given as the difference between actual value of the response variable and the predicted value. That is, e=y−y^, where y be the actual value of the response variable and y^ be the predicted value of the response variable for same predictor variable.

Put the actual value of ‘price’ as y=135,000 and the predicted value as y^=99,859.89.

Then,

e=135,000−99,859.89=35,140.11.

Thus, the residual corresponding to a house that sold for $135,000 is $35,140.11.

c.

To determine

Explain what the residual says about the transaction.

c.

Expert Solution

Explanation of Solution

Justification:

The real price, at which the house is sold, is $135,000. The regression model predicted that the price of the house would be sold at $99,859.89.

The residual $35,140.11 means that the house is sold at a price of $35,140.11 more than what was predicted.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Calculate the 90% confidence interval for the population mean difference using the data in the attached image. I need to see where I went wrong.

Microsoft Excel snapshot for random sampling: Also note the formula used for the last column 02 x✓ fx =INDEX(5852:58551, RANK(C2, $C$2:$C$51)) A B 1 No. States 2 1 ALABAMA Rand No. 0.925957526 3 2 ALASKA 0.372999976 4 3 ARIZONA 0.941323044 5 4 ARKANSAS 0.071266381 Random Sample CALIFORNIA NORTH CAROLINA ARKANSAS WASHINGTON G7 Microsoft Excel snapshot for systematic sampling: xfx INDEX(SD52:50551, F7) A B E F G 1 No. States Rand No. Random Sample population 50 2 1 ALABAMA 0.5296685 NEW HAMPSHIRE sample 10 3 2 ALASKA 0.4493186 OKLAHOMA k 5 4 3 ARIZONA 0.707914 KANSAS 5 4 ARKANSAS 0.4831379 NORTH DAKOTA 6 5 CALIFORNIA 0.7277162 INDIANA Random Sample Sample Name 7 6 COLORADO 0.5865002 MISSISSIPPI 8 7:ONNECTICU 0.7640596 ILLINOIS 9 8 DELAWARE 0.5783029 MISSOURI 525 10 15 INDIANA MARYLAND COLORADO

Suppose the Internal Revenue Service reported that the mean tax refund for the year 2022 was $3401. Assume the standard deviation is $82.5 and that the amounts refunded follow a normal probability distribution. Solve the following three parts? (For the answer to question 14, 15, and 16, start with making a bell curve. Identify on the bell curve where is mean, X, and area(s) to be determined. 1.What percent of the refunds are more than $3,500? 2. What percent of the refunds are more than $3500 but less than $3579? 3. What percent of the refunds are more than $3325 but less than $3579?

Answer 2

Question

Chapter 9, Problem 1E

a.

To determine

Find the predicted price of a 2 bedroom, 1,000 sq-ft house.

a.

Expert Solution

Answer to Problem 1E

The predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

Explanation of Solution

Given info:

The regression model for the price of houses in upstate New York with respect to number of bedrooms and living area is given as:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area.

Calculation:

The given regression equation is:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area

Substitute Bedrooms=2 and Living Area=1,000 in the equation:

Price^=20,986.09−(7483.10×2)+(93.84×1,000)=20,986.09−14,966.2+93,840=99,859.89.

Thus, the predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

b.

To determine

Find the residual corresponding to a house that sold for $135,000.

b.

Expert Solution

Answer to Problem 1E

The residual corresponding to a house that sold for $135,000 is $35,140.11.

Explanation of Solution

Calculation:

Residual:

The residual corresponding to a predictor variable is given as the difference between actual value of the response variable and the predicted value. That is, e=y−y^, where y be the actual value of the response variable and y^ be the predicted value of the response variable for same predictor variable.

Put the actual value of ‘price’ as y=135,000 and the predicted value as y^=99,859.89.

Then,

e=135,000−99,859.89=35,140.11.

Thus, the residual corresponding to a house that sold for $135,000 is $35,140.11.

c.

To determine

Explain what the residual says about the transaction.

c.

Expert Solution

Explanation of Solution

Justification:

The real price, at which the house is sold, is $135,000. The regression model predicted that the price of the house would be sold at $99,859.89.

The residual $35,140.11 means that the house is sold at a price of $35,140.11 more than what was predicted.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 9, Problem 1E

a.

To determine

Find the predicted price of a 2 bedroom, 1,000 sq-ft house.

a.

Expert Solution

Answer to Problem 1E

The predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

Explanation of Solution

Given info:

The regression model for the price of houses in upstate New York with respect to number of bedrooms and living area is given as:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area.

Calculation:

The given regression equation is:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area

Substitute Bedrooms=2 and Living Area=1,000 in the equation:

Price^=20,986.09−(7483.10×2)+(93.84×1,000)=20,986.09−14,966.2+93,840=99,859.89.

Thus, the predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

b.

To determine

Find the residual corresponding to a house that sold for $135,000.

b.

Expert Solution

Answer to Problem 1E

The residual corresponding to a house that sold for $135,000 is $35,140.11.

Explanation of Solution

Calculation:

Residual:

The residual corresponding to a predictor variable is given as the difference between actual value of the response variable and the predicted value. That is, e=y−y^, where y be the actual value of the response variable and y^ be the predicted value of the response variable for same predictor variable.

Put the actual value of ‘price’ as y=135,000 and the predicted value as y^=99,859.89.

Then,

e=135,000−99,859.89=35,140.11.

Thus, the residual corresponding to a house that sold for $135,000 is $35,140.11.

c.

To determine

Explain what the residual says about the transaction.

c.

Expert Solution

Explanation of Solution

Justification:

The real price, at which the house is sold, is $135,000. The regression model predicted that the price of the house would be sold at $99,859.89.

The residual $35,140.11 means that the house is sold at a price of $35,140.11 more than what was predicted.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 1E

a.

To determine

Find the predicted price of a 2 bedroom, 1,000 sq-ft house.

a.

Expert Solution

Answer to Problem 1E

The predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

Explanation of Solution

Given info:

The regression model for the price of houses in upstate New York with respect to number of bedrooms and living area is given as:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area.

Calculation:

The given regression equation is:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area

Substitute Bedrooms=2 and Living Area=1,000 in the equation:

Price^=20,986.09−(7483.10×2)+(93.84×1,000)=20,986.09−14,966.2+93,840=99,859.89.

Thus, the predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

b.

To determine

Find the residual corresponding to a house that sold for $135,000.

b.

Expert Solution

Answer to Problem 1E

The residual corresponding to a house that sold for $135,000 is $35,140.11.

Explanation of Solution

Calculation:

Residual:

The residual corresponding to a predictor variable is given as the difference between actual value of the response variable and the predicted value. That is, e=y−y^, where y be the actual value of the response variable and y^ be the predicted value of the response variable for same predictor variable.

Put the actual value of ‘price’ as y=135,000 and the predicted value as y^=99,859.89.

Then,

e=135,000−99,859.89=35,140.11.

Thus, the residual corresponding to a house that sold for $135,000 is $35,140.11.

c.

To determine

Explain what the residual says about the transaction.

c.

Expert Solution

Explanation of Solution

Justification:

The real price, at which the house is sold, is $135,000. The regression model predicted that the price of the house would be sold at $99,859.89.

The residual $35,140.11 means that the house is sold at a price of $35,140.11 more than what was predicted.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1E

a.

To determine

Find the predicted price of a 2 bedroom, 1,000 sq-ft house.

a.

Expert Solution

Answer to Problem 1E

The predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

Explanation of Solution

Given info:

The regression model for the price of houses in upstate New York with respect to number of bedrooms and living area is given as:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area.

Calculation:

The given regression equation is:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area

Substitute Bedrooms=2 and Living Area=1,000 in the equation:

Price^=20,986.09−(7483.10×2)+(93.84×1,000)=20,986.09−14,966.2+93,840=99,859.89.

Thus, the predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

b.

To determine

Find the residual corresponding to a house that sold for $135,000.

b.

Expert Solution

Answer to Problem 1E

The residual corresponding to a house that sold for $135,000 is $35,140.11.

Explanation of Solution

Calculation:

Residual:

The residual corresponding to a predictor variable is given as the difference between actual value of the response variable and the predicted value. That is, e=y−y^, where y be the actual value of the response variable and y^ be the predicted value of the response variable for same predictor variable.

Put the actual value of ‘price’ as y=135,000 and the predicted value as y^=99,859.89.

Then,

e=135,000−99,859.89=35,140.11.

Thus, the residual corresponding to a house that sold for $135,000 is $35,140.11.

c.

To determine

Explain what the residual says about the transaction.

c.

Expert Solution

Explanation of Solution

Justification:

The real price, at which the house is sold, is $135,000. The regression model predicted that the price of the house would be sold at $99,859.89.

The residual $35,140.11 means that the house is sold at a price of $35,140.11 more than what was predicted.

Answer 6

Chapter 9, Problem 1E

a.

To determine

Find the predicted price of a 2 bedroom, 1,000 sq-ft house.

a.

Expert Solution

Answer to Problem 1E

The predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

Explanation of Solution

Given info:

The regression model for the price of houses in upstate New York with respect to number of bedrooms and living area is given as:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area.

Calculation:

The given regression equation is:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area

Substitute Bedrooms=2 and Living Area=1,000 in the equation:

Price^=20,986.09−(7483.10×2)+(93.84×1,000)=20,986.09−14,966.2+93,840=99,859.89.

Thus, the predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

Answer 7

Chapter 9, Problem 1E

a.

To determine

Find the predicted price of a 2 bedroom, 1,000 sq-ft house.

Answer 8

a.

Expert Solution

Answer to Problem 1E

The predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Given info:

The regression model for the price of houses in upstate New York with respect to number of bedrooms and living area is given as:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area.

Calculation:

The given regression equation is:

Price^=20,986.09−7483.10 Bedrooms+93.84 Living Area

Substitute Bedrooms=2 and Living Area=1,000 in the equation:

Price^=20,986.09−(7483.10×2)+(93.84×1,000)=20,986.09−14,966.2+93,840=99,859.89.

Thus, the predicted price of a 2 bedroom, 1,000 sq-ft house in upstate New York is likely to be $99,859.89.

Answer 13

b.

To determine

Find the residual corresponding to a house that sold for $135,000.

b.

Expert Solution

Answer to Problem 1E

The residual corresponding to a house that sold for $135,000 is $35,140.11.

Explanation of Solution

Calculation:

Residual:

The residual corresponding to a predictor variable is given as the difference between actual value of the response variable and the predicted value. That is, e=y−y^, where y be the actual value of the response variable and y^ be the predicted value of the response variable for same predictor variable.

Put the actual value of ‘price’ as y=135,000 and the predicted value as y^=99,859.89.

Then,

e=135,000−99,859.89=35,140.11.

Thus, the residual corresponding to a house that sold for $135,000 is $35,140.11.

Answer 14

b.

To determine

Find the residual corresponding to a house that sold for $135,000.

Answer 15

b.

Expert Solution

Answer to Problem 1E

The residual corresponding to a house that sold for $135,000 is $35,140.11.

Answer 16

b.

Expert Solution

Answer 17

b.

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Calculation:

Residual:

The residual corresponding to a predictor variable is given as the difference between actual value of the response variable and the predicted value. That is, e=y−y^, where y be the actual value of the response variable and y^ be the predicted value of the response variable for same predictor variable.

Put the actual value of ‘price’ as y=135,000 and the predicted value as y^=99,859.89.

Then,

e=135,000−99,859.89=35,140.11.

Thus, the residual corresponding to a house that sold for $135,000 is $35,140.11.