STATS:DATA+MODELS(LL)-W/ACCESS>CUSTOM<
STATS:DATA+MODELS(LL)-W/ACCESS>CUSTOM<
21st Edition
ISBN: 9780137643219
Author: DeVeaux
Publisher: PEARSON
bartleby

Videos

Question
Book Icon
Chapter 9, Problem 1E

a.

To determine

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

a.

Expert Solution
Check Mark

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^=20,986.097483.10 Bedrooms+93.84 Living Area.

Calculation:

The given regression equation is:

Price^=20,986.097483.10 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)=20,986.0914,966.2+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
Check Mark

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=yy^, 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=135,00099,859.89=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
Check Mark

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?
Knowledge Booster
Background pattern image
Statistics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Text book image
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Text book image
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Text book image
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
Text book image
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Text book image
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman
What Are Research Ethics?; Author: HighSchoolScience101;https://www.youtube.com/watch?v=nX4c3V23DZI;License: Standard YouTube License, CC-BY
What is Ethics in Research - ethics in research (research ethics); Author: Chee-Onn Leong;https://www.youtube.com/watch?v=W8Vk0sXtMGU;License: Standard YouTube License, CC-BY