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
-What does the coefficient of Rooms mean in the context of the regression model?
A) The average selling price will increase by $7,460 for every additional room for yachts with the same length and age.
B) The average selling price will increase 7.46 times for every additional room.
C) With every additional room the selling price will increase by 7.46%, all other things being equal.
D) There is always a decrease in selling price of $7,460 for every additional room on a yacht.
E) The average selling price will increase by $120.51 for every additional room for yachts with the same length and age.
Correct Answer:
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