(Solved): QUESTION 4 (9) A developer who specializes in summer Cottage properties is considering purchasing a ...
QUESTION 4 (9) A developer who specializes in summer Cottage properties is considering purchasing a large tract of land adjoining a lake. The current owner of the tract has already subdivided the land into separate building lots and has prepared the lots by removing some of the trees. The developer wants to forecast the value of each plot. From previous experience, she knows that the most important factors affecting the price (
y) of a plot are (Plot size
/x_(1)), number of mature trees (Trees
/x_(2)), and distance to the lake (Distance
/x_(3)). From a nearby area, she gathers the relevant data for 60 recently sold plots. Table 5 SUMMARYOUIPUT \table[[Regression Statistics],[Miltiple R,0.4924],[RSquare,0.2425],[Adjusted R Square,0.2019],[Standard Error,40.2435],[Observations,60]] ANOVA \table[[,df,SS,MS,F,Significance F,],[Regression,,3,29029.7163,9676.5721,5.9749,0.0013],[Residual,,56,90694.3331,1619.5417,,],[Total,59,119724.0493,,,,]] \table[[,Coefficients,Standard Error,t Stat,P-value,Lower
95%,Upper
95%