Question

Develop a multiple linear regression model to predict the fair market value based on land area of the property and age, in years.

Fair Market Value($000)	Property Size (acres)	Age	House Size (square feet)
522.9	0.2297	56	2448
425.0	0.2192	61	1942
539.2	0.1630	39	2073
628.2	0.4608	28	2707
490.4	0.2549	56	2042
487.7	0.2290	98	2089
370.3	0.1808	58	1433
777.9	0.5015	17	2991
347.1	0.2229	62	1008
756.8	0.1300	25	3202
389.0	0.1763	64	2230
889.0	1.3100	62	1848
452.2	0.2520	56	2100
412.4	0.1148	22	1846
338.3	0.1693	74	1331
334.3	0.1714	62	1344
437.4	0.3849	54	1822
644.0	0.6545	56	2479
387.8	0.1722	62	1605
399.8	0.1435	88	2080
356.4	0.2755	81	2410
346.9	0.1148	107	1753
541.8	0.3636	55	1884
388.0	0.1474	51	2050
564.0	0.2281	50	2978
454.4	0.4626	92	2132
417.3	0.1889	64	1551
318.8	0.1228	54	1129
519.8	0.1492	44	1674
310.2	0.0852	104	1184

2. Report the model significance level p-value

A.) 2.01E-11 B.) .0002999 C.) 9.22E-08 D.) 1.01E-06

3. What is the variable Age's estimate in your regression Model?

A.) 532.2883 B.) 407.1346 C.) -2.82571 D.)None

4. Suppose your property size .25 acres and house age is 55 years what do you expect the house value in the market on average

A.) None B.) 320.1876 C.) 478.6577 D.) 485.7898

5. Report your model adjusted R-square and explain it: Choose one

A. .676483, About 67.65% variation of dependent variable-house market value can be explained by the regression model.

B. .698795, About 69.88% variation of dependent variable-house market value can be explained by the regression model.

C. .698795, About 69.88% variation of dependent variable-house market value can be explained by the regression model, by taking account sample size and the number of independent variables.

D. .676483, About 67.65% variation of dependent variable-house market value can be explained by the regression model, by taking account sample size and the number of independent variables.

Answer 1

Applying regression on above data:

2) model significance level p-value : C.) 9.22E-08

3) variable Age's estimate in your regression Model C.) -2.82571

4) expect the house value =532.2883+407.1346*0.25+(-2.8257)*55 =478.6577

option C

5) D. .676483, About 67.65% variation of dependent variable-house market value can be explained by the regression model, by taking account sample size and the number of independent variables.