At 95% confidence, HWY (is, is not) significantly related to PRICE. True or false? At 95% confidence, a significant relationship exists between PRICE and the set of all the independent variables included in the regression model (SQFT, BEDS, BATHS, and HWY). (true, false). True or false? About 93% of the variability in PRICE is explained by the set of all the independent variables included in the regression model (SQFT, BEDS, BATHS, and HWY), and about 7% of the variability in PRICE is explained by the other factors not included in the regression. (true, false).
QMSC WORK STUDY PART 4 Question 20
A company has recorded data on a sample of real estate listings from Waltham, MA. The variables are:
PRICE -- List price, thousands of dollars
SQFT -- Square footage
BEDS -- Number of bedrooms
BATHS -- Number of bathrooms
HWY -- A dummy variable (1 = close to highways; 0 = far from highways).
|
PRICE |
SQFT |
BEDS |
BATHS |
HWY |
|
713 |
2400 |
4 |
3 |
0 |
|
356 |
1431 |
2 |
2 |
1 |
|
463 |
1714 |
3 |
2 |
1 |
|
645 |
2524 |
3 |
2 |
1 |
|
368 |
1272 |
3 |
1 |
1 |
|
308 |
850 |
1 |
1 |
0 |
|
625 |
2732 |
4 |
2.5 |
1 |
|
585 |
1947 |
3 |
1.5 |
0 |
|
330 |
1465 |
3 |
1 |
0 |
|
435 |
1500 |
3 |
1.5 |
1 |
|
402 |
1152 |
2 |
1 |
1 |
|
583 |
2224 |
3 |
2.5 |
0 |
Use Excel's Regression tool to answer the following questions. To copy the data set, highlight the table, press Ctrl-c, click on the Excel cell to which you want to copy, then press Ctrl-v.
Do calculations in Excel. Do not round intermediate calculations. Round your final answer to the required precision. Apply the appropriate rounding rule if necessary. You can use the "Format Cells..." option in Excel to show the required number of decimal places (Excel will automatically round the number up or down).
Fill in Multiple Blanks
1. The estimated regression line is (enter the estimated coefficients in the appropriate space; show one (1) digit to the right of the decimal point, for example, 1.0, 1.2; apply the appropriate rounding rule if necessary):
PRICEhat = +*SQFT +*BEDS +*BATHS + *HWY.
2. On average, a house with 4 bedrooms will be (in thousands of dollars) (show one (1) digit to the right of the decimal point, for example, 1.0, 1.2; apply the appropriate rounding rule if
necessary; do not show the dollar symbol ($) in your answer) (cheaper, more expensive) than a house with 2 bedrooms, ceteris paribus.
3. On average, a house located close to highways will be (in thousands of dollars) (show one (1) digit to the right of the decimal point, for example, 1.0, 1.2; apply the appropriate rounding rule if
necessary; do not show the dollar symbol ($) in your answer) (cheaper, more expensive) than a house located far from highways, ceteris paribus.
Predict PRICE for a house with square footage of 2200, 2 bedrooms and 1.5 bathrooms, which is located far from highways. PRICEhat (in thousands of dollars) = (show one (1) digit to the right of the decimal point, for example, 1.0, 1.2; apply the appropriate rounding rule if necessary; do not show the dollar symbol ($) in your answer).
At 95% confidence, SQFT (is, is not) significantly related to PRICE.
6. At 95% confidence, BEDS (is, is not) significantly related to PRICE.
7. At 95% confidence, BATHS (is, is not) significantly related to PRICE.
At 95% confidence, HWY (is, is not) significantly related to PRICE.
- True or false? At 95% confidence, a significant relationship exists between PRICE and the set of all the independent variables included in the regression model (SQFT, BEDS, BATHS, and HWY). (true, false).
- True or false? About 93% of the variability in PRICE is explained by the set of all the independent variables included in the regression model (SQFT, BEDS, BATHS, and HWY), and about 7% of the variability in PRICE is explained by the other factors not included in the regression. (true, false).
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