Mathematics, 12.08.2020 06:01 zanaplen27

Estimate: Price = β0 + β1Sqft + β2Beds + β2Baths + ε, where Price, Sqft, Beds, and Baths refer to home price, square footage, number of bedrooms, and number of bathrooms, respectively. Price Sqft Beds Baths Col
840000 2768 4 3.5 1
822000 2500 4 2.5 1
713000 2400 3 3 1
689000 2200 3 2.5 1
685000 2716 3 3.5 1
645000 2524 3 2 1
625000 2732 4 2.5 0
620000 2436 4 3.5 1
587500 2100 3 1.5 1
585000 1947 3 1.5 1
583000 2224 3 2.5 1
569000 3262 4 2 0
546000 1792 3 2 0
540000 1488 3 1.5 0
537000 2907 3 2.5 0
516000 1951 4 2 1
511000 1752 3 1.5 1
510000 1727 3 2 1
495000 1692 3 2 0
463000 1714 3 2 0
457000 1650 3 2 0
451000 1685 3 2 0
435000 1500 3 1.5 1
431700 1896 2 1.5 0
414000 1182 2 1.5 0
401500 1152 3 1 0
399000 1383 4 1 0
380000 1344 4 2 0
380000 1272 3 1 0
375900 2275 5 1 0
372000 1005 2 1 0
367500 1272 3 1 0
356500 1431 2 2 1
330000 1362 3 1 0
330000 1465 3 1 0
307500 850 1 1 0

Required:
a. Use R’s predict() function to construct the 95% confidence interval for the expected price of a 2,500-square-foot home in Arlington, Massachusetts, with three bedrooms and two bathrooms.
b. Use R’s predict() function to construct the corresponding prediction interval for an individual home.

Answers: 2

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Estimate: Price = β0 + β1Sqft + β2Beds + β2Baths + ε, where Price, Sqft, Beds, and Baths refer to ho...