Question: Areal tor in Arlington, Massachusetts, is analyzing the relationship between the sale price of a home (Price), its square footage (Sqft), the number of bedrooms (Beds), and the number of bathrooms (Baths). She collects data on 36 recent sales in Arlington in the first quarter of 2009 for the analysis. A portion of the data is shown below; the complete data set can be found on the text website, labeled Arlington Homes.
She estimates the model as Price = β0 + β1 Sqft + β2 Beds + β3 Baths + ε and obtains the following output.
a. Replicate the above regression output.
b. Interpret the slope coefficients.
c. Predict the price of a 2,500 square-foot home with three bedrooms and two bathrooms.