Remaining Time: 49 minutes, 56 seconds Less than haif of the time remains Questi
ID: 3324874 • Letter: R
Question
Remaining Time: 49 minutes, 56 seconds Less than haif of the time remains Question Completion Status: QUESTION 1 4 points Save Anawer A home appraisal company would like to develop a regression model that would predict the seling price of a house based on the age of the house in years (X1), the living area of the house in square feet (X2) and the number of bedrooms (K3). The following table shows the resuits of a best subsets regression procedure. Best Subsets Analysis ntermediate Calculations R2T 0 279821 15 Cp k 1 R Square Ad R Square Std Emo 19.10307 2 0234231 0 175325437 54795 49 8.290727 2 0 509278 0471529835 43864 56 16.63776 2 0 296944 0242862521 52503 82 10.06684 3 0514973 0 434135157 45389 97 1.82613 3 047022 0 381923072 47437 83 2077011 3 071822 0 671256948 34596 47 Model X1 X2 x3 X1X2 X1X3 X2X3 X1X2X3 4 4 0720179 0643864528 36009 01 e set of independent variables that would be the most appropriate to predict the selling price of a house isExplanation / Answer
Solution
Most appropriate variable to predict the selling price of the house are:
The living area of the house in square feet (x2) and the number of bedrooms (X3)
Because these variables adjusted r square is greatest amongg all the variables with lowest standard error, hence a good predicting variables