[Exercise 6] Super Maxx found in their data that the selling price for a home increases by about $40,000 for each additional car space in the garage. Explain the analysis flaws in using this statistic to support advising clients to add a larger garage if they wish to get a higher selling price. How would a client use the statistic for deciding to add a larger garage? [Select all correct statements. There are exactly 5 correct statements] A. The conclusion assumes a larger garage size is the direct cause of increased selling price. We have no basis for assuming this. B. The conclusion is ignoring the interaction between home size and garage size that effects the selling price. C. There is insufficient variability of garage sizes in the data to support the conclusion holds in general. D. The impact of garage size on selling price is in error. E. There is no data on selling prices for homes with O or more than 3 car spaces. So the statistic only applies to homes with 1 or 2 car space garages since we cannot get sale price comparisons between homes with 0 and 1 and 3 to 4 car space garages. F. There are alternative explanations that contradict that the statistic supports the conclusion. For example, larger homes tend to have larger garages, but also larger homes tend to fetch higher higher selling prices regardless of garage size. G. Larger garages have nothing to do with selling price. The statistic is logically absurd. Н. We don't know the statistic applies to a home not in the data set. So we cannot be confident that it applies to any given clients home. Also "each additional car spot" is unclear. Is this statistic a rate of sale price increase per car slot or just an increment that applies only to adding exactly 1 car spot? The client would consider the cost of increasing their garage by N car spots. If this is much less than N*$40,000 they would make the improvement. The client would consider what percent $40,000 is in terms of the value of their home. If this is larger than 20% they would make the improvement.
[Exercise 6] Super Maxx found in their data that the selling price for a home increases by about $40,000 for each additional car space in the garage. Explain the analysis flaws in using this statistic to support advising clients to add a larger garage if they wish to get a higher selling price. How would a client use the statistic for deciding to add a larger garage? [Select all correct statements. There are exactly 5 correct statements] A. The conclusion assumes a larger garage size is the direct cause of increased selling price. We have no basis for assuming this. B. The conclusion is ignoring the interaction between home size and garage size that effects the selling price. C. There is insufficient variability of garage sizes in the data to support the conclusion holds in general. D. The impact of garage size on selling price is in error. E. There is no data on selling prices for homes with O or more than 3 car spaces. So the statistic only applies to homes with 1 or 2 car space garages since we cannot get sale price comparisons between homes with 0 and 1 and 3 to 4 car space garages. F. There are alternative explanations that contradict that the statistic supports the conclusion. For example, larger homes tend to have larger garages, but also larger homes tend to fetch higher higher selling prices regardless of garage size. G. Larger garages have nothing to do with selling price. The statistic is logically absurd. Н. We don't know the statistic applies to a home not in the data set. So we cannot be confident that it applies to any given clients home. Also "each additional car spot" is unclear. Is this statistic a rate of sale price increase per car slot or just an increment that applies only to adding exactly 1 car spot? The client would consider the cost of increasing their garage by N car spots. If this is much less than N*$40,000 they would make the improvement. The client would consider what percent $40,000 is in terms of the value of their home. If this is larger than 20% they would make the improvement.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Mm3
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman