Use the following to answer the questions below:
A quantitatively savvy, young couple is interested in purchasing a home in northern New York. They collected data on 48 houses that had recently sold in the area. They want to predict the selling price of homes (in thousands of dollars) based on the size of the home (in square feet).
The regression equation is Price (in thousands) = 17.1 + 0.0643 Size (sq. ft.)

-Use the equation of the least squares line to predict the selling price of a home that is 1,742 square feet in size.
A) $129,111
B) $299,000
C) $143,773
D) $115,582

Question

Use the following to answer the questions below:
A quantitatively savvy, young couple is interested in purchasing a home in northern New York. They collected data on 48 houses that had recently sold in the area. They want to predict the selling price of homes (in thousands of dollars) based on the size of the home (in square feet). 
The regression equation is Price (in thousands) = 17.1 + 0.0643 Size (sq. ft.)
 
-Use the equation of the least squares line to predict the selling price of a home that is 1,742 square feet in size.
A) $129,111 
B) $299,000 
C) $143,773 
D) $115,582

Quizplus · Accepted Answer

Price (in thousands) = 17.1 + 0.0643 Size (sq. ft.)
 11eeb2d3_8e03_7a32_b9aa_4d6be2ec8bec_TBW1049_11 = 17.1 + 0.0643(1742) = 129.111
The predicted price of a 1,742 square foot house is $129,111.

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