EXERCISE 12. THE DETERMINANTS OF PROPERTY PRICES IN LONDON (V) Below you can find the equations corresponding to two different models and their corresponding coefficients of determination. State the hypothesis and perform a test to check which model is better (use a = 0.05). price = Bo + B₁ floorm2 n=1199; R² = 0.3555 price = B. +3₁ floorm2 + ₂age + 3bathroom + B4 bedroom +35dholborn n = 1199; R² = 0.5283

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EXERCISE 12. THE DETERMINANTS OF PROPERTY PRICES IN LONDON (V)
Below you can find the equations corresponding to two different models and their corresponding coefficients
of determination. State the hypothesis and perform a test to check which model is better (use a = 0.05).
price = Bo + B₁ floorm2 n = 1199; R² = 0.3555
price = ß. + Â₁ floorm2 + ß₂age + Â3bathroom + Âåbedroom + Â5dholborn_n=1199; R² = 0.5283
Transcribed Image Text:EXERCISE 12. THE DETERMINANTS OF PROPERTY PRICES IN LONDON (V) Below you can find the equations corresponding to two different models and their corresponding coefficients of determination. State the hypothesis and perform a test to check which model is better (use a = 0.05). price = Bo + B₁ floorm2 n = 1199; R² = 0.3555 price = ß. + Â₁ floorm2 + ß₂age + Â3bathroom + Âåbedroom + Â5dholborn_n=1199; R² = 0.5283
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