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The S-Plus object house contains data on pertaining to 27 houses sold in the US state of Pennsylvania in 1977. The dataset contains 10 variables (in order):
Taxes Current local taxes, in hundreds of dollars
Bathrooms Number of bathrooms
LotSize Lot size, in thousands of square feet
LivingSpace Living space, in thousands of square feet
Garage Number of car spaces in garage
Rooms Total number of rooms
Bedrooms Number of bedrooms
Age Age of house, in years
Fireplaces Number of fireplaces
Price Actual selling price, in thousands of dollars
Turn this object into a dataframe using the command:
house <- as.data.frame(house)
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(a) What is a firereplace worth towards the selling price of houses in this area on the average,
all other things being equal? What is a 95% confidence interval for this value?
(b) You have purchased a 6000 square foot lot in a district where the current taxes are $850.
On the lot stands a 9 year old, 3 bedroom, 1 bathroom house with a total living are of
1650 square feet and 7 total rooms. It also has a firereplace and a 2-car garage. What would
you have expected to pay for this house? Find a 95% confidence interval for this value.
Now, you want to upgrade the house by adding a 200 square foot playroom to the house,
and are told that this will cost you $2000. Is it worth it, in terms of the increase in the
expected current worth of the house?
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