The agency typically adds $15000 to the valuation of a house for each bedroom

Task 3 (25 marks)

The agency typically adds $15000 to the valuation of a house for each bedroom that house has. Using a regression analysis, fully examine the questions:

1. What is the effect of the number of bedrooms on house prices in this data? Is it a positive effect?
2. Does an extra bedroom typically add an extra $15000 to the house price?

In answering this question, at the least you should:

                        -  Show your regression output and results, which should include the regression 
equation and R-square.

                        -  Interpret the regression slope coefficient.

                        -  Perform relevant tests or procedures to verify whether the assumptions of 
regression are satisfied.

                        -  Show a regression fit plot (Y and fitted values of Y vs X)

                        -  Perform the analysis/tests that answer the questions