The company wants to optimise the selling price of the properties, based on important factors such as area, bedrooms, parking, etc. Essentially, the company wants:
- To identify the variables affecting house prices, e.g., area, number of rooms, bathrooms, etc.
- To create a linear model that quantitatively relates house prices with variables, such as the number of rooms, area, number of bathrooms, etc.
- To know the accuracy of the model, i.e. how well do these variables predict the house prices.
So this makes interpretation is important!