Question

A real estate agent would like to predict the selling price of a single-family house by predicting the price (in thousands of dollars) based on the square footage (in 100 square feet). If the LSRL for the data is ŷ = 3.8785x + 18.3538. Predict the price of a 3000 square foot house (in thousands of dollars).

Answer 1

Answer:

$134.7088 thousand dollars

Step-by-step explanation:

The given equation of Least Squares Regression Line is

$\hat{y}=3.8785x+18.3538$

where, $\hat{y}$ is predicted selling price of the house (in thousands of dollars) based on the square footage (in 100 square feet).

We need to find the price of a 3000 square foot house (in thousands of dollars).

3000 = 30 × 100

3000 square foot = 30 square footage (in 100 square feet).

Substitute x=30 in the given equation.

$\hat{y}=3.8785(30)+18.3538$

$\hat{y}=116.355+18.3538$

$\hat{y}=134.7088$

Therefore, price of a 3000 square foot house is $134.7088 thousand dollars.