A few rows from a dataset are shown below. Assume that the h…
A few rows from a dataset are shown below. Assume that the house_price represents the price in dollars. (Ignore the fact that these prices are unrealistic in today’s market) | square_feet| house_price|property_type |location_grade | |———–:|———–:|:————-|:————–| | 2282| 2604|Townhome |A | | 1624| 1103|Townhome |C | | 2189| 2670|Condo |C | | 1737| 1747|House |C | | 1905| 2428|House |A | | 1549| 1456|Townhome |A | For the above, I built a model with house_price as the response variable and property_type and square_feet as the explanatory variables. I then computed different variances and standard deviations as shown below. The column names are self-explanatory. | model_var| house_price_sd| residual_sd| residual_var| model_sd| house_price_var| |———:|————–:|———–:|————:|——–:|—————:| | 434547.5| 877.2213| 578.7656| 334969.7| 659.2022| 769517.1| Based on the above, how much of the variability in the response variable does the model explain? Enter a number between 0 and 1 correct to two decimal places.
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