The program estimates the coefficients of a linear regression model (array c) from the following data:
size | size of the sauna | distance to water | number of indoor bathrooms | proximity of neighbors | actual price | |
---|---|---|---|---|---|---|
cabin 1 | 25 | 2 | 50 | 1 | 500 | 127,900 |
cabin 2 | 39 | 3 | 10 | 1 | 1000 | 222,100 |
cabin 3 | 13 | 2 | 13 | 1 | 1000 | 143,750 |
cabin 4 | 82 | 5 | 20 | 2 | 120 | 268,000 |
cabin 5 | 130 | 6 | 10 | 2 | 600 | 460,700 |
cabin 6 | 115 | 6 | 10 | 1 | 550 | 407,000 |
Use the predicted coefficients to obtain price estimates for the following two cabins:
size | size of the sauna | distance to water | number of indoor bathrooms | proximity of neighbors | actual price | |
---|---|---|---|---|---|---|
cabin 7 | 36 | 3 | 15 | 1 | 850 | 196000 |
cabin 8 | 75 | 5 | 18 | 2 | 540 | 290000 |
Note that the predicted prices will not be the same as the actual prices (which are given in the above table just for comparison – you won't need them in the exercise).