E Click the icon to view the house sales data. House sales data a. Develop a multiple regression model for sales price as a function of lot cost and type of home without any interaction term. Create a dummy variable named "Townhouse", where it is equal to 1 when Type = "Townhouse" and 0 otherwise. Determine the coefficients of the regression equation. Lot Cost $21,700 $26,550 Sales Price $114,740 Single Family $138,530 $149,905 $172,000 $183,916 $189,390 Single Family $191,120 $198,898 $205,076 $207,821 $216,205 $252,800 Single Family $257,000 $270,000 Single Family $270,500 Single Family $273,105 Single Family $279,720 $296,990 Single Family $303,500 Single Family $309,487 $314,898 $321,602 $326,412 Single Family $339,374 $339,380 $340,065 $356,117 $361,949 Single Family $434,426 $494,820 Туре Townhouse Sales Price = 108726 +(3.68 )• Lot Cost + (- 75063 ) • Townhouse (Round the constant and coefficient of Townhouse to the nearest integer as needed. Round all other values to two decimal places as needed.) Townhouse Single Family Townhouse Townhouse $25,550 $26,200 $46,025 $28,000 $36,000 $46,025 $46,025 $40,299 $37,500 b. Determine if an interaction exists between lot cost and type of home and find the best model. Use a = 0.1 as the level of significance. First determine whether an interaction exists. Select the correct choice below and, if necessary, fill in the answer box to complete your choice. A. An interaction exists because the p-value of the variable Lot Cost Townhouse is 0.091, which is less than a. (Type an integer or a decimal rounded to three decimal places as needed.) Townhouse Townhouse O B. An interaction exists because the p-value of the variable Townhouse i (Type an integer or a decimal rounded to three decimal places as needed.) Single Family Single Family s , which is greater than a Townhouse $74,400 $44,198 $44,344 $42,099 $46.000 $45,650 $58,000 $60,000 $46,850 $41,768 $83,300 $63,523 $71,449 $50,150 $55,850 $57,219 $51.591 $58,422 O C. An interaction exists because the p-value of the variable Lot Cost is which is greater than a. Single Family (Type an integer or a decimal rounded to three decimal places as needed.) O D. No interaction exists because the p-value is less than a for all of the independent variables. Single Family Now identify the best model and determine the coefficients of the regression equation. Select the correct choice below and fill in the answer boxes to complete your choice. (Round the constant and coefficient of Townhouse to the nearest integer as needed. Round all other values to two decimal places as needed.) Single Family Single Family Single Family O A. Sales Price =+)• Townhouse + )• Lot Cost + ()• Lot Cost - Townhouse O B. Sales Price =+()• Townhouse +). Lot Cost Townhouse Single Family Single Family Single Family Single Family OC. Sales Price = +)• Lot Cost + () Townhouse Single Family $85,122 Print Done

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter9: Quadratic Functions And Equations
Section9.8: Analyzing Functions With Successive Differences
Problem 2BGP
icon
Related questions
Question
A national homebuilder builds single-family homes and condominium-style townhouses. The accompanying dataset provides information on the selling price, lot cost, and type of home for closings during one month. Complete parts a through c.
E Click the icon to view the house sales data.
House sales data
a. Develop a multiple regression model for sales price as a function of lot cost and type of home without any interaction term.
Create a dummy variable named "Townhouse", where it is equal to 1 when Type = "Townhouse" and 0 otherwise. Determine the coefficients of the regression equation.
Туре
Townhouse
Sales Price
Lot Cost
Sales Price = 108726 + ( 3.68 )• Lot Cost + ( - 75063 )• Townhouse
$114,740
$138,530
$21,700
$26,550
Single Family
Townhouse
Single Family
Townhouse
(Round the constant and coefficient of Townhouse to the nearest integer as needed. Round all other values to two decimal places as needed.)
$149,905
$172.000
$25,550
$26,200
b. Determine if an interaction exists between lot cost and type of home and find the best model. Use a = 0.1 as the level of significance.
$183,916
$189.390
$46,025
lownhouse
Single Family
Townhouse
S28,000
$36,000
$46,025
$46,025
$40 299
First determine whether an interaction exists. Select the correct choice below and, if necessary, fill in the answer box to complete your choice.
$191,120
191,120
$198,898
C A. An interaction exists because the p-value of the variable Lot Cost • Townhouse is 0.091, which is less than a.
(Type an integer or a decimal rounded to three decimal places as needed.)
$205.076
$207,821
$216.205
Townhouse
Single Family
Single Family
Townhouse
Single Family
Single
O B. An interaction exists because the p-value of the variable Townhouse is
(Type an integer or a decimal rounded to three decimal places as needed.)
which is greater than a.
$37,500
$252,800
$74,400
$44,198
$257,000
$270.000
O C. An interaction exists because the p-value of the variable Lot Cost is
(Type an integer or a decimal rounded to three decimal places as needed.)
which is greater than a.
Family
Single
$44.344
$42,099
Family
Single Family
Single
$270,500
$273,105
$279,720
$296.990
$303.500
$46.000
O D. No interaction exists because the p-value is less than a for all of the independent variables.
Family
Single Family
Single Family
Single Family
Single Family
Famíly
$45,650
$58,000
Now identify the best model and determine the coefficients of the regression equation. Select the correct choice below and fill in the answer boxes to complete your choice.
(Round the constant and coefficient of Townhouse to the nearest integer as needed. Round all other values to two decimal places as needed.)
$60.000
$309,487
$46.850
$314,898
$321,602
$326,412
$339,374
$339,380
$340,065
$356,117
$361,949
$434,426
$494,820
$41.768
O A. Sales Price =
)• Townhouse +
)• Lot Cost + ()• Lot Cost • Townhouse
Single
Family
$83,300
$63,523
$71,449
$50,150
$55.850
$57,219
$51,591
O B. Sales Price =
+()• Townhouse + ()• Lot Cost • Townhouse
Family
O C. Sales Price =
+ (|
)• Lot Cost + (
)• Townhouse
Single Fami
Family
Single Family
Single Family
Single Family
Single Family
$58.422
$85,122
Print
Done
Transcribed Image Text:A national homebuilder builds single-family homes and condominium-style townhouses. The accompanying dataset provides information on the selling price, lot cost, and type of home for closings during one month. Complete parts a through c. E Click the icon to view the house sales data. House sales data a. Develop a multiple regression model for sales price as a function of lot cost and type of home without any interaction term. Create a dummy variable named "Townhouse", where it is equal to 1 when Type = "Townhouse" and 0 otherwise. Determine the coefficients of the regression equation. Туре Townhouse Sales Price Lot Cost Sales Price = 108726 + ( 3.68 )• Lot Cost + ( - 75063 )• Townhouse $114,740 $138,530 $21,700 $26,550 Single Family Townhouse Single Family Townhouse (Round the constant and coefficient of Townhouse to the nearest integer as needed. Round all other values to two decimal places as needed.) $149,905 $172.000 $25,550 $26,200 b. Determine if an interaction exists between lot cost and type of home and find the best model. Use a = 0.1 as the level of significance. $183,916 $189.390 $46,025 lownhouse Single Family Townhouse S28,000 $36,000 $46,025 $46,025 $40 299 First determine whether an interaction exists. Select the correct choice below and, if necessary, fill in the answer box to complete your choice. $191,120 191,120 $198,898 C A. An interaction exists because the p-value of the variable Lot Cost • Townhouse is 0.091, which is less than a. (Type an integer or a decimal rounded to three decimal places as needed.) $205.076 $207,821 $216.205 Townhouse Single Family Single Family Townhouse Single Family Single O B. An interaction exists because the p-value of the variable Townhouse is (Type an integer or a decimal rounded to three decimal places as needed.) which is greater than a. $37,500 $252,800 $74,400 $44,198 $257,000 $270.000 O C. An interaction exists because the p-value of the variable Lot Cost is (Type an integer or a decimal rounded to three decimal places as needed.) which is greater than a. Family Single $44.344 $42,099 Family Single Family Single $270,500 $273,105 $279,720 $296.990 $303.500 $46.000 O D. No interaction exists because the p-value is less than a for all of the independent variables. Family Single Family Single Family Single Family Single Family Famíly $45,650 $58,000 Now identify the best model and determine the coefficients of the regression equation. Select the correct choice below and fill in the answer boxes to complete your choice. (Round the constant and coefficient of Townhouse to the nearest integer as needed. Round all other values to two decimal places as needed.) $60.000 $309,487 $46.850 $314,898 $321,602 $326,412 $339,374 $339,380 $340,065 $356,117 $361,949 $434,426 $494,820 $41.768 O A. Sales Price = )• Townhouse + )• Lot Cost + ()• Lot Cost • Townhouse Single Family $83,300 $63,523 $71,449 $50,150 $55.850 $57,219 $51,591 O B. Sales Price = +()• Townhouse + ()• Lot Cost • Townhouse Family O C. Sales Price = + (| )• Lot Cost + ( )• Townhouse Single Fami Family Single Family Single Family Single Family Single Family $58.422 $85,122 Print Done
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
College Algebra
College Algebra
Algebra
ISBN:
9781938168383
Author:
Jay Abramson
Publisher:
OpenStax
Holt Mcdougal Larson Pre-algebra: Student Edition…
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Functions and Change: A Modeling Approach to Coll…
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning
College Algebra
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning