Choose the one alternative that best completes the statement or answers the ques
ID: 3351107 • Letter: C
Question
Choose the one alternative that best completes the statement or answers the questions.
A county real estate appralser wants to develop a statistical model to predict the appraised value of houses in a section of the county called East Meadow. One of the many variables thought to be an important predictor of appraised value is the number of rooms in the house. Consequently, the appraiser decided to fit the simple linear regression model: where y- appraised value of the house n thousands of dollars) and x number of rooms, Using data collected for a sample of n74 houses in East Meadow, the following results were obtained: 7480. 17.98r Give a practical interpretation of the estimate of the slape of the leant squares line. A) For each additional dollar of appralsed value, we estimate the B) For each additional room in the house, we estimate the appraised C) For each additional room in the house, we estimate the appraised D) For a house with O rooms, we estimate the appraised value to be number of rooms in the house to increase by 17.98 value to increase S 17,980, value to increase $74,800. $74,800, A county real estate appraiser wants to develop a statistical model to predict the appraised value of houses in a section of the county called East Meadow. One of the many variables thought to be an important predictor of appraised value is the number of rooms in the house. Consequently, the appraiser decided to fit the simple linear regression model: where y- appraised value of the house n thousands of dollars) and x number of rooms, Using data collected for a sample of n74 houses in East Meadow, the following results were obtained 74.801972x Give a practical interpretation of the estimate of the y-intercept of the least squares line. A) For each additional room in the house, we estimate the appraised value to increase $19,720 B) There is no practical interpretation, since a house with 0 rooms is C) We estimate the base appraised value for any house to be $74,800 D) For each additional room in the house, we estimate the appraised value to increase $74,800.Explanation / Answer
1)
b1 = 17.98
hence when x is increased by 1 , then y^ increase by 17.98 *1000 = 17980
B) is correct
2)
intercept is y^ when x = 0
hence
option B) is correct