SUMMARY OUTPUT Regression Statistics Multiple R R. Square Adjusted R Square Standard Error Observations 0.864054 0.594544 1.006797
SUMMARY OUTPUT Regression Statistics Multiple R R. Square Adjusted R Square Standard Error Observations 0.864054 0.594544 1.006797
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

Transcribed Image Text:1
The K3 Estate Ltd is into estate development operating around Madina and Adenta areas. The
company wants to know whether Monthly Income, Age and Educational level can be used to
determine House Size of their customers. As a Quantitative Analyst use the following
Regression output in the tables to answer the questions that follow:
SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Adjusted R. Square
Standard Error
Observations
ANOVA
Regression
Residual
Total
Intercept
Age
Education
Level
Monthly
Income
0.864054
0.594544
1.006797
SS
MS
F
14.9318 4.977266 4.910286
1.013641
3
5 5.068203
8
20
Standard
Error
Significance
F
0.049566
Lower
95%
Upper
95%
2.68869
0.000473 0.087385
Coefficients
1 Stat P-value
-0.13123 1.096997 -0.11963 0.909436 -2.95115
0.043929 0.016905
0.301484 -0.31237 0.767365 -0.86916 0.680814
0.000771 0.000269 2.865152 0.035194 7.93E-05 0.001463

Transcribed Image Text:(iv)
(v)
(vi)
(vii)
Which of the independent variable(s) is/are significant in explaining the changes in
House Sizes and why?
If age changes by 1 unit, state the range of values within which House Size will fall
for 95% confidence level.
Test the significance of Monthly income at 5% level. Interpret your results.
Predict the Size of a House if Monthly Income of a customer of K3 Company Ltd
increases by Ghs500, Age by 2 years and Education level by 2 units.
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Step 1: Given Information
VIEWStep 2: (iv) Determine the independent variable-
VIEWStep 3: (v) Determine the range of age within house size will fall for 95% confidence level
VIEWStep 4: (vi)Test the significance of monthly income at 5% level
VIEWStep 5: (vii) determine the predicted value of the size of a house
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