Question

A real estate agent would like to predict the selling price of a single-family house by predicting the price (in thousands of dollars) based on the square footage (in 100 square feet). If the LSRL for the data is ? = 3.8785x + 18.3538, predict the price of a 4000 square foot house (in thousands of dollars). tbl

Answer 1

$173493.8

Explanation:

Data provided in the question:

LSRL for the data is ? = 3.8785x + 18.3538

Here,

x is area in 100 square feet

and

price in thousands of dollar

Thus,

For the given area 4000 square foot

x = 4000 ÷ 100 = 40 [Area in 100 square feet]

Therefore,

Using the given equation

Price = 3.8785(40) + 18.3538

or

Price = 173.4938 in thousands of dollar

or

Price = 173.4938 × $1000

Price = $173493.8