Chapter A.2, Problem 46E

Custom Home Resales. Hanna Properties specializes in custom-home resales in the Equestrian Estates, an exclusive subdivision in Phoenix, Arizona. Thirty-three properties were randomly selected, and the following data were obtained. The variables investigated were square footage, number of bedrooms, number of bathrooms, number of days on the market, and selling price (in thousands of dollars). We performed a regression analysis for selling price in terms of the other four variables. The resulting computer output is displayed in Outputs A.10 and A.11 on page A-20.

1. a. Use the scatterplot matrix in Output A.10 to assess whether a multiple linear regression model might be appropriate for predicting selling price.
2. b. Use the computer output in Output A.11 to obtain the sample regression equation.
3. c. Apply the sample regression equation to find the predicted selling price for a home in the Equestrian Estates that has 3200 sq ft, 4 bedrooms, and 3 bathrooms, and has been on the market for 60 days.