d. The p-value to test the null hypothesis that the slope on sqft is 0 (Ho : B₁ = 0), is approximately 0. What can you say about sqft being a significant explanatory variable or covariate when explaining price? e. State the coefficient of determination value R2 and interpret it in context of the study. f. What is the estimate of the correlation coefficient, R?
d. The p-value to test the null hypothesis that the slope on sqft is 0 (Ho : B₁ = 0), is approximately 0. What can you say about sqft being a significant explanatory variable or covariate when explaining price? e. State the coefficient of determination value R2 and interpret it in context of the study. f. What is the estimate of the correlation coefficient, R?
Chapter4: Linear Functions
Section: Chapter Questions
Problem 30PT: For the following exercises, use Table 4 which shows the percent of unemployed persons 25 years or...
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Transcribed Image Text:d. The p-value to test the null hypothesis that the slope on sqft is 0 (Ho : B₁ = 0), is approximately
0. What can you say about sqft being a significant explanatory variable or covariate when explaining
price?
e. State the coefficient of determination value R² and interpret it in context of the study.
f. What is the estimate of the correlation coefficient, R?
Transcribed Image Text:4. A study was conducted to investigate the relationship between the size of a house (in square
feet) and the selling price of a house (in dollars). The response variable is price in dollars, and we
want to study if the covariate of the square footage helps explain the response.
A random sample of 522 houses was used, and the linear regression output from R is below.
1m (formula price sqft, data
Coefficients:
=
house)
Estimate Std. Error t value Pr(>|t|)
(Intercept) -81432.946 11551.846 -7.049 5.74e-12 ***
sqft
158.950
4.875 32.605 <2e-16 ***
Residual standard error: 79120 on 520 degrees of freedom
Multiple R-squared: 0.6715, Adjusted R-squared: 0.6709
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