4. Suppose you want to test whether you can solely rely on assessment to predict house price, thatis, knowing housing characteristics will not help you predict housing price, once assessment is included in the model Using a sample of 125 houses, you have estimated Price a+B,assess+ B,lotsize+B, sqft+B,bams+u and you decide to do a test at the 5% significance level Then your best approach to answering the question is to a) check each of the p-vahues for B.B.andB,.If none of them is <0.05, you decide you don't need the characteristics b) check the overall Fstatistic for the model If the corresponding p-value is < 0.05, you decide you need the characteristics 1 c) Test the joint significance of P.B.andp,.That is, estimate Price- aBamess + a, and calculate an Fstatistic that is equal to R-R.V3)/(1- R_V120). where is the R from the first regression and Risthe R from this second regression. If this F statistic is> 2.68 you decide that you need the characteristics (The 5% critical value in an F distribution with df (3, 120) is 2.68). d) do the same as in d but the decision rule is that if the Fstatistic is> 2.68, need the characteristics. don't
4. Suppose you want to test whether you can solely rely on assessment to predict house price, thatis, knowing housing characteristics will not help you predict housing price, once assessment is included in the model Using a sample of 125 houses, you have estimated Price a+B,assess+ B,lotsize+B, sqft+B,bams+u and you decide to do a test at the 5% significance level Then your best approach to answering the question is to a) check each of the p-vahues for B.B.andB,.If none of them is <0.05, you decide you don't need the characteristics b) check the overall Fstatistic for the model If the corresponding p-value is < 0.05, you decide you need the characteristics 1 c) Test the joint significance of P.B.andp,.That is, estimate Price- aBamess + a, and calculate an Fstatistic that is equal to R-R.V3)/(1- R_V120). where is the R from the first regression and Risthe R from this second regression. If this F statistic is> 2.68 you decide that you need the characteristics (The 5% critical value in an F distribution with df (3, 120) is 2.68). d) do the same as in d but the decision rule is that if the Fstatistic is> 2.68, need the characteristics. don't
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Transcribed Image Text:4. Suppose you want to test whether you can solely rely on assessment to predict
house price, thatis, knowing housing characteristics will not help you predict
housing price, once assessment is included in the model Using a sample of 125
houses, you have estimated
Price a+B,assess+ B,lotsize+B, sqft+B,bams+u
and you decide to do a test at the 5% significance level Then your best approach to
answering the question is to
a) check each of the p-vahues for B.B.andB,.If none of them is <0.05, you decide
you don't need the characteristics
b) check the overall Fstatistic for the model If the corresponding p-value is < 0.05,
you decide you need the characteristics
1
c) Test the joint significance of P.B.andp,.That is, estimate
Price- aBamess + a, and calculate an Fstatistic that is equal to
R-R.V3)/(1- R_V120). where is the R from the first regression and
Risthe R from this second regression. If this F statistic is> 2.68 you decide that
you need the characteristics (The 5% critical value in an F distribution with df (3,
120) is 2.68).
d) do the same as in d but the decision rule is that if the Fstatistic is> 2.68,
need the characteristics.
don't
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman