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Math Help - Regression of a Price Equation Question

  1. #1
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    Regression of a Price Equation Question

    A regression was performed to predict selling price of houses based on Price in dollars, Area in square feet, Lotsize in square feet, and Age in years. The R2 is 92%. The equation from this regression is given here

    Price = 169328 + 35.3 Area + 0.718 Lotsize – 6543 Age

    Which of the following statements is correct according to the model?

    A. Each year a house ages, it is worth $6543 less.
    B. Every extra square foot of area is associated with an additional $35.3 in average price, for houses with a given lot size and age.
    C. Every additional dollar in price means lot size increases 0.718 square feet, for houses with a given area and age.
    D. This model fits 92% of the data points.
    E. None of the above are true.

    I feel like it may be C , and definitely NOT A or D.

    Anyone? Please.
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  2. #2
    MHF Contributor harish21's Avatar
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    C seems the most appropriate!
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  3. #3
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    Quote Originally Posted by harish21 View Post
    C seems the most appropriate!
    Can you please give a reason
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