Question 3 Bluereef real estate agent wants to form a relationship between the prices of houses, how many bedrooms, House size in sq ft and Lot Size in sq ft. The data pertaining to 100 houses were processed using MINITAB and the following is an extract of the output obtained: The regression equation is Price = ß + Bedroom + yHouse Size + ALot Size Predictor Coef SE Coef T P Constant 37718 2.66 Bedrooms 2306 0.33 74.3 -4.36 House Size Lot Size S= 25023 Source DF SS Regression 3 76501718347 Residual Error Total R-Sq-56.0% 96 99 60109046053 14177 6994 52.98 17.02 0.742 0.164 -0.26 0.798 R-Sq (adj) -54.6% MS 25500572782 626135896 P a) Write out the regression equation. b) Fill in the missing values *, **, and c) Use the p-value approach to determine if & is significant at the 5% significance level

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Question 3
Bluereef real estate agent wants to form a relationship between the prices of houses, how many
bedrooms, House size in sq ft and Lot Size in sq ft.
The data pertaining to 100 houses were processed using MINITAB and the following is an extract
of the output obtained:
The regression equation is Price = ß + Bedroom + yHouse Size + ¿Lot Size
Predictor
Coef
SE Coef
T
P
**
Constant
37718
2306
2.66
0.33
Bedrooms
74.3
*
-4.36
House Size
Lot Size
S= 25023
Source
DF
Regression 3
Residual
Error
Total
R-Sq-56.0%
14177
6994
52.98
17.02
96 60109046053
99
SS
MS
76501718347 25500572782
626135896
0.742
0.164
-0.26 0.798
R-Sq (adj) -54.6%
F
P
****
a) Write out the regression equation.
b) Fill in the missing values *, **, *** and ****.
c) Use the p-value approach to determine if & is significant at the 5% significance level
Transcribed Image Text:Question 3 Bluereef real estate agent wants to form a relationship between the prices of houses, how many bedrooms, House size in sq ft and Lot Size in sq ft. The data pertaining to 100 houses were processed using MINITAB and the following is an extract of the output obtained: The regression equation is Price = ß + Bedroom + yHouse Size + ¿Lot Size Predictor Coef SE Coef T P ** Constant 37718 2306 2.66 0.33 Bedrooms 74.3 * -4.36 House Size Lot Size S= 25023 Source DF Regression 3 Residual Error Total R-Sq-56.0% 14177 6994 52.98 17.02 96 60109046053 99 SS MS 76501718347 25500572782 626135896 0.742 0.164 -0.26 0.798 R-Sq (adj) -54.6% F P **** a) Write out the regression equation. b) Fill in the missing values *, **, *** and ****. c) Use the p-value approach to determine if & is significant at the 5% significance level
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Question 3
Bluereef real estate agent wants to form a relationship between the prices of houses, how many
bedrooms, House size in sq ft and Lot Size in sq ft.
The data pertaining to 100 houses were processed using MINITAB and the following is an extract
of the output obtained:
The regression equation is Price = ß + Bedroom + yHouse Size + Lot Size
Predictor
Coef
SE Coef
T
P
Constant
37718
2.66
**
Bedrooms
2306
0.33
74.3
*
-4.36
House Size
Lot Size
S= 25023
Source.
Regression
Residual
Error
Total
DF
3
96
99
R-Sq=56.0%
14177
6994
52.98
17.02
60109046053
SS
MS
76501718347 25500572782
R-Sq (adj) = 54.6%
-0.26
626135896
F
***
0.742
0.164
0.798
P
****
a) Write out the regression equation.
b) Fill in the missing values *, **, *** and ****
c) Use the p-value approach to determine if & is significant at the 5% significance level
f) Give an interpretation to the term "R-sq" and comment on its value.
d) Is y significantly different from -0.5?
e) Perform the F test at the 1% level, making sure to state the null and alternative hypotheses.
Transcribed Image Text:Question 3 Bluereef real estate agent wants to form a relationship between the prices of houses, how many bedrooms, House size in sq ft and Lot Size in sq ft. The data pertaining to 100 houses were processed using MINITAB and the following is an extract of the output obtained: The regression equation is Price = ß + Bedroom + yHouse Size + Lot Size Predictor Coef SE Coef T P Constant 37718 2.66 ** Bedrooms 2306 0.33 74.3 * -4.36 House Size Lot Size S= 25023 Source. Regression Residual Error Total DF 3 96 99 R-Sq=56.0% 14177 6994 52.98 17.02 60109046053 SS MS 76501718347 25500572782 R-Sq (adj) = 54.6% -0.26 626135896 F *** 0.742 0.164 0.798 P **** a) Write out the regression equation. b) Fill in the missing values *, **, *** and **** c) Use the p-value approach to determine if & is significant at the 5% significance level f) Give an interpretation to the term "R-sq" and comment on its value. d) Is y significantly different from -0.5? e) Perform the F test at the 1% level, making sure to state the null and alternative hypotheses.
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