In: Math
Find the best regression equation that gives selling price as a function of living area, taxes, acreage and rooms.
House Selling Price | |||||
Problem taken from Triola. Elementary Statistics. Addison-Wesley | |||||
House | Selling Price | Living Area | Taxes | Acreage | Rooms |
$1,000 | 100 sq. ft | $1,000 | |||
1 | 145 | 15 | 1.9 | 2 | 5 |
2 | 228 | 38 | 3 | 3.6 | 11 |
3 | 150 | 23 | 1.4 | 1.8 | 9 |
4 | 130 | 16 | 1.4 | 0.53 | 7 |
5 | 160 | 16 | 1.5 | 0.5 | 7 |
6 | 114 | 13 | 1.8 | 0.31 | 7 |
7 | 142 | 20 | 2.4 | 0.75 | 9 |
8 | 265 | 24 | 4 | 2 | 7 |
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The best regression function which gives a relation of Price by living area (X1) , taxes (X2) , acreage (X3) and rooms (X4) is the following.
I have performed the linear regression analysis below.
The best -fit line is therefore,
Price^ = 139.12 + 13.61*Living Area + 21.18*Taxes - 36.49*Acreage - 31.83*Rooms