A real estate research firm has developed a regression model relating list price (Y in $1,000) with two independent variables. The two independent variables are number of bedrooms and size of the property. Part of the regression results are shown below. ANOVA df SS MS Regression 2 154881.37 77440.69 Residual 57 899723.61 15784.62 Coefficients Standard Error t Stat Intercept 74.298 91.326 # Bedrooms 73.634 25.271 Acres 41.458 38.630 What has been the sample size? What is the value of the F test statistic for testing whether the regression model is significant? What is the rejection rule for testing whether the regression model is significant at the 0.05 level of significance? What is the value of the t test statistic for testing whether the variable Acres is significant?
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
A real estate research firm has developed a regression model relating list price (Y in $1,000) with two independent variables. The two independent variables are number of bedrooms and size of the property. Part of the regression results are shown below.
|
ANOVA |
|||
|
|
df |
SS |
MS |
|
Regression |
2 |
154881.37 |
77440.69 |
|
Residual |
57 |
899723.61 |
15784.62 |
|
|
Coefficients |
Standard Error |
t Stat |
|
Intercept |
74.298 |
91.326 |
|
|
# Bedrooms |
73.634 |
25.271 |
|
|
Acres |
41.458 |
38.630 |
|
- What has been the
sample size ?
- What is the value of the F test statistic for testing whether the regression model is significant?
- What is the rejection rule for testing whether the regression model is significant at the 0.05 level of significance?
What is the value of the t test statistic for testing whether the variable Acres is significant?
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