The following data give the selling price, square footage, number of bedrooms,

and age of houses that have sold in a neighborhood in the last 6 months.
Develop a regression model to predict selling price based on the square
footage, number of bedrooms, and age. Use this to predict the selling price
of a 10 year old, 2000 square foot house with 3 bedrooms.

Selling price (S) Square Footage (F) Bedrooms (B) Age (A)
64000 1670 2 30
59000 1339 2 25
61500 1712 3 30
79000 1840 3 40
87500 2300 3 18
92500 2234 3 30
95000 2311 3 19
113000 2377 3 7
115000 2736 4 10
138000 2500 3 1
142500 2500 4 3
144000 2479 3 3
145000 2400 3 1
147500 3124 4 0
144000 2500 3 2
155500 4062 4 10
165000 2854 3 3

S F B A
64000 1670 2 30
59000 1339 2 25
61500 1712 3 30
79000 1840 3 40
87500 2300 3 18
92500 2234 3 30
95000 2311 3 19
113000 2377 3 7
115000 2736 4 10
138000 2500 3 1
142500 2500 4 3
144000 2479 3 3
145000 2400 3 1
147500 3124 4 0
144000 2500 3 2
155500 4062 4 10
 165000 2854 3 3

The Regression Equation is: S = 25.94F - 2151.74B - 1711.54A + 82185.65 (See the Regression Sheet)

When F = 2000, B = 3 and A = 10, we have S = 25.94(2000) - 2151.74(3) - 1711.54(10) + 82185.65 = 110496.58
The selling price is $110496.58.
5 = 110496.58
Regression Analysis

R² 0.886
Adjusted R² 0.860 n 17
R 0.941 k 3
Std. Error 13439.767 Dep. Var. S

ANOVA table
Source SS df MS F p-value
Regression 18,274,462,394.7756 3 6,091,487,464.9252 33.72 2.12E-06
Residual 2,348,155,252.2833 13 180,627,327.0987
Total 20,622,617,647.0588 16

Regression output confidence interval

variables coefficients std. error t (df=13) p-value 95% lower
Intercept 82,185.6495 23,008.7667 3.572 .0034 32,478.2311
F 25.9408 9.5830 2.707 .0180 5.2379
B -2,151.7417 8,826.0870 -0.244 .8112 -21,219.3435
A -1,711.5375 327.1908 -5.231 .0002 -2,418.3903

Observation S Predicted Residual

1 64,000.0 69,857.1 -5,857.1
2 59,000.0 69,828.4 -10,828.4
3 61,500.0 68,794.9 -7,294.9
4 79,000.0 54,999.9 24,000.1
5 87,500.0 104,586.5 -17,086.5
6 92,500.0 82,336.0 10,164.0
7 95,000.0 103,160.3 -8,160.3
8 113,000.0 125,410.9 -12,410.9
9 115,000.0 127,437.2 -12,437.2
10 138,000.0 138,870.8 -870.8
11 142,500.0 133,296.0 9,204.0
12 144,000.0 134,903.0 9,097.0
13 145,000.0 136,276.7 8,723.3
14 147,500.0 154,617.6 -7,117.6
15 144,000.0 137,159.3 6,840.7
16 155,500.0 161,834.7 -6,334.7
17 165,000.0 144,630.7 20,369.3

Predicted values for: S

95% Confidence Interval
F B A Predicted lower upper
2,000 3 10 110,496.576 99,278.058 121,715.094
confidence interval
95% upper std. coeff.
131,893.0678 0.000
46.6437 0.447
16,915.8600 -0.036
-1,004.6846 -0.622

95% Prediction Interval

lower upper Leverage
79,369.776 141,623.376 0.149