Question: (14 pts) Again refer to the AmesHouses data. Fit a linear regression model with Sale Price as a linear function of Living Area, Bedrooms, and Lot Area.

1. What is the best fit slope for each of the three variables and the intercept?
2. Interpret the slope of Sale Price with respect to Bedrooms in this model? Explain any differences with the same slope from Question 11.
3. What percentage of the variability in Sale Price is explained by this three-variable model?
4. Is the model overall significant at α=1%?
5. Which variables are significant predictors of Sale Price at α=5%?
6. What Sale Price does the model predict for a 4,500 sq ft. three bedroom house with 40,000 square foot lot?
7. What house (ID number) is the largest outlier (either positive or negative)? Describe why this house is such a large outlier.

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