You are a new hire at Laurel Woods Real Estate, which specializes in selling foreclosed homes via public auction. Your boss has asked you to use the following data (mortgage balance, monthly payments, payments made before default, and final auction price) on a random sample of recent sales to estimate what the actual auction price will be.Loan ($)Payments ($)Payments MadeAuction ($)85600985.87116900115300902.563375800103100736.2864390084600945.4591660097600821.072440700104400983.2726631001138001075.5419726001164001087.163572300100000900.01335810092800683.113637100105200915.243452600105900905.67385190094700810.72543200105600891.332052600104100864.38742700857001074.733022200113600871.6124770001194001021.23586900090600836.463356001045001056.372263000GIVEN - ALL CORRECT:Auction price =(118,929.46)+1.63 Loan +2.06 Monthly payment +50.34 Payments Made.ANOVA SourceDFSSMSFp-valueRegression35,966,725,0611,988,908,35439.830Residual Error16798,944,43949,934,027 Total196,765,669,500 The excel data table is attached at the bottom (It is also correct).FIND: State the decision rule to test the significance of each regression coefficient. Use α = 0.05. Reject t< _____________ or t> ______________ PredictorCoefficientSE Coefficientp-valueConstant(118,929.461)19,733.607(6.027)0.000Loan1.6270.1818.9931.180Monthly Payment2.06214.9480.1380.892Payments made50.338134.9140.3730.714

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Description: You are a new hire at Laurel Woods Real Estate, which specializes in selling foreclosed homes via public auction. Your boss has asked you to use the following data (mortgage balance, monthly payments, payments made before default, and final auction p

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MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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You are a new hire at Laurel Woods Real Estate, which specializes in selling foreclosed homes via public auction. Your boss has asked you to use the following data (mortgage balance, monthly payments, payments made before default, and final auction price) on a random sample of recent sales to estimate what the actual auction price will be.

Loan ($)	Payments ($)	Payments Made	Auction ($)
85600	985.87	1	16900
115300	902.56	33	75800
103100	736.28	6	43900
84600	945.45	9	16600
97600	821.07	24	40700
104400	983.27	26	63100
113800	1075.54	19	72600
116400	1087.16	35	72300
100000	900.01	33	58100
92800	683.11	36	37100
105200	915.24	34	52600
105900	905.67	38	51900
94700	810.7	25	43200
105600	891.33	20	52600
104100	864.38	7	42700
85700	1074.73	30	22200
113600	871.61	24	77000
119400	1021.23	58	69000
90600	836.46	3	35600
104500	1056.37	22	63000

GIVEN - ALL CORRECT:

Auction price =(118,929.46)+1.63 Loan +2.06 Monthly payment +50.34 Payments Made.
ANOVA

Source DF SS MS F p-value

Regression 3 5,966,725,061 1,988,908,354 39.83 0

Residual Error 16 798,944,439 49,934,027

Total 19 6,765,669,500
The excel data table is attached at the bottom (It is also correct).

FIND:

State the decision rule to test the significance of each regression coefficient. Use α = 0.05.

Reject t< _____________ or t> ______________

Predictor
Coefficient
SE Coefficient
p-value
Constant
(118,929.461)
19,733.607
(6.027)
0.000
Loan
1.627
0.181
8.993
1.180
Monthly Payment
2.062
14.948
0.138
0.892
Payments made
50.338
134.914
0.373
0.714

Expert Solution

Step 1

From the given information, the estimated auction price is,

Auction price =(118,929.46)+1.63 Loan +2.06 Monthly payment +50.34 Payments Made.

The Anova table is displayed below .

ANOVA

Source DF SS MS F p-value

Regression 3 5,966,725,061 1,988,908,354 39.83 0

Residual Error 16 798,944,439 49,934,027

Total 19 6,765,669,500

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