A Real Estate Agent Developed a Model to Relate a House's

question 11

Multiple Choice

A real estate agent developed a model to relate a house's selling price (Y) to the area of floor space (X) and the area of floor space squared (X²) . The multiple regression equation for this model is: Y = 125 - 3X + X²
where: Y = selling price (times $1,000)
X = square feet of floor space (times 100)
What is the difference in selling prices of a house with 1,700 square feet and one with 1,800 square feet?

• A) $30 000
• B) $3000
• C) $363 000
• D) $32 000

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