Our final model is \[ \log \left(\text { Price }_{i}\right)=\beta_{0}+\beta_{1} \times \text { Age }_{i}+\epsilon_{i}, \] where \( \epsilon_{i} \sim \) iid \( N\left(0, \sigma^{2}\right) \).
Added by James R.
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The model includes an intercept (\(\beta_0\)), a slope coefficient (\(\beta_1\)) for the age variable, and an error term (\(\epsilon_i\)). The error term is assumed to be independently and identically distributed (iid) following a normal distribution with mean 0 Show more…
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