Find the regression equation to predict price from area and year
Table 12.5.1 shows data on Picasso paintings giving the price, area of canvas, and year for each one. a. Find the regression equation to predict price from area and year. b. Interpret the regression coefficient for area. c. Interpret the regression coefficient for year. d. What would you expect the sales price to be for a 1954 painting with an area of 4,000 square centimeters? e. About how large are the prediction errors for these paintings? f. What percentage of the variation in prices of Picasso paintings can be attributed to the size of the painting and the year in which it was painted? g. Is the regression significant? Report the results of the appropriate test and interpret its meaning. h. Does area have significant impact on price, following adjustment for year? In particular, are larger paintings worth significantly more or significantly less on average than smaller paintings from the same year? i. Does year have a significant impact on price, following adjustment for area? What does this tell you about older versus newer paintings?