Consider the following to answer the question(s) below:
A regression was performed to predict the Selling Price of a yacht in thousands of dollars based on the number of Rooms it had, its Age (years), and its Length (feet). The R2 is 68.45%. The equation is given here.
Selling Price = 120.51 + 7.46 Rooms - 1.78 Age + 2.83 Length
-Which of the following statements is true?
A) For a given Age and Length, every extra room is associated with an additional $7,460 in the average selling price of the yacht.
B) The model fits 68.45% of the data.
C) Every additional foot of Length causes the selling price of the yacht to increase 2.83 times.
D) The price of a yacht decreases 1.78 times with every year it ages.
E) The selling price of an individual yacht cannot be predicted with this model.

Question

Quizplus · Accepted Answer

The coefficients in the regression equation represent the average change in the dependent variable (Selling Price) for a one-unit change in the predictor, holding all other predictors constant. Therefore, for every additional room, the selling price increases by $7,460 on average, given that the coefficient for Rooms is 7.46 and the selling price is in thousands of dollars.

Consider the Following to Answer the Question(s) Below