Question

what is R^2

Question Help a random sample of 250 home sales from a community in 2003. Let Price denote the selling price (in $1,000), BDR denote the number of bedrooms, Bath denote the number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square the house (in years), and Poor denote a binary variable that is equal to 1 if the condition of the house is reported as "poor An estimated regression yields Price 120.4+0.490BDR+23.6Bath+0.158Hsize+0.002Lsize 0.091Age-49.3Poor, R 0.73, SER 41.9 Suppose that a homeowner converts part of an existing family room in her house into a new bathroom. What is the expected increase in the value of the house? The expected increase in the value of the house is $ 23600.(Round your response to the nearest dollar.) Suppose that a homeowner adds a new bathroom to her house, which increases the size of the house by 101 square feet. What is the expected increase in the value of the house?

Answer 1

R-square of the given regression line is 0.73 i.e. 73%. Hence 73% variation in price is explained by variables number of bedrroms, number of bathrooms, size of the house, lot size, age of the house and condition of the house i.e. poor or good.