Question

Below is the computer output for the appraised value (in thousands of dollars) and number of rooms for houses in East Meadow, New York. Predict the price of a 9 room house (in thousands of dollars) The regression equation is value 748+19.7 rooms Coef 9.718 R-sq 43.896 Stdev 19.04 2.631 t-ratio 3.93 7.49 Constant Rooms S 29.05 Analysis of Variance Source R-sq (adj) 43.0% MS 47398 844 DF 47398 60775 108173 Regression rror Total 72 73 a) 370.262 b) 257.262 c) 252.262 d) 362.262 e) 756.786 f) None of the above

Answer 1

Answer:

The predicted price of a 9 room house is $925.3 K.

Step-by-step explanation:

The regression equation for predicting the appraised value (in thousands of dollars) from the  number of rooms for houses in East Meadow, New York is as follows:

$\text{Value}=748+19.7\ \text{Rooms}$

Compute the price of a 9 room house as follows:

$\text{Value}=748+19.7\ \text{Rooms}$

         $=748+(19.7\times 9)\\\\=748+177.3\\\\=925.3$

Thus, the predicted price of a 9 room house is $925.3 K.