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In: Statistics and Probability

Builders need to predict the final selling price of a home. For one model using size...

Builders need to predict the final selling price of a home. For one model using size (x), in square feet, to predict price (y), in U.S. dollars, a slope of 77 was found. Interpret this slope in context.

a.

If a house costs one more dollar, it is predicted to increase in size by 77 square feet, on average.
b.

If a house increases in size by one square foot, it is predicted to cost $77 more, on average.
c.

If a house were to actually be only one square foot in size, it would cost $77, according to this model.
d.

If a house were to actually be only one square foot in size, it would increase in price by $77.
e.

If a house were to actually cost one dollar, it would be only 77 square feet, according to this model.

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Expert Solution

TOPIC:Interpretation of the slope coefficient in the context of regression analysis.

orchestra answered 2 years ago
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