The Question
Data is collected on a person’s income (thousands of dollars), their age, and the value of their home (thousands of dollars). We would like to predict home value, H, as a function of income and age. The following three ordered pairs are found: (100,40,275), (60, 30, 180), and (110, 50, 305). The relationship is assumed to be linear. Find a plane to model the data.
My Attempt
My first thought is to turn these three points into two vectors and then get the cross-product of said two vectors. This results in a vector normal to the plane which we need for the equation: $n_1(x-x_0) + n_2(y-y_0) + n_3(z-z0) = 0$
Where n1, n2, and n3 are the components of the normal vector. Now what trips me up is the wording in the question that asks that the "Home value be a function of income and age" but the plane that this gets me is a function of income, age, AND home value which doesn't make much sense considering we are calculating home value.
You can always write $z$ in terms of the other values. Maybe it's easier to explain in 2D. Assume that you have the equation $ax+by+c=0$. This is the equation of a line. You can still write $y$ in terms of $x$ as $$y=-\frac ab x-\frac cb$$ The only requirement is that $b\ne 0$. Your 3D problem is equivalent, you just add one more parameter. The equation of your plane will become $$z=\alpha x+\beta y+\gamma$$ If you plug in the three triplets in the above equation, you get a system of three linear equations with three unknowns ($\alpha,\ \beta,\ \gamma$).