A Home Appraisal Company Would Like to Develop a Regression $$\hat { y }$$

question 147

Multiple Choice

A home appraisal company would like to develop a regression model that would predict the selling price of a house based on the age of the house in years (X1) , the living area of the house in square feet (X2) , and the number of bedrooms (X3) . The following regression model was chosen using a data set of house statistics:
$$\hat { y }$$ = 88,399.5547 + 91.3333x₂ + 31,471.1372x₃
The first house from the data set had the following values:
Selling price = $324,000 Age = 22 years
Square Feet = 2,000 Bedrooms = 3
The residual for this house is ______.

• A)- 41,480
• B)10,216
• C)- 16,095
• D)23,558

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