In: Statistics and Probability
29.5 |
1.5 | 7 |
27.9 | 1.175 | 6 |
25.9 | 1.232 | 6 |
29.9 | 1.121 | 6 |
29.9 | 0.988 | 6 |
30.9 | 1.24 | 7 |
28.9 | 1.501 | 6 |
35.9 | 1.225 | 6 |
31.5 | 1.552 | 6 |
31 | 0.975 | 5 |
30.9 | 1.121 | 6 |
30 | 1.02 | 5 |
36.9 | 1.664 | 8 |
41.9 | 1.488 | 7 |
40.5 | 1.376 | 6 |
43.9 | 1.5 | 7 |
37.5 | 1.256 | 6 |
37.9 | 1.69 | 6 |
44.5 | 1.82 | 8 |
37.9 | 1.652 | 6 |
38.9 | 1.777 | 8 |
36.9 | 1.504 | 7 |
45.8 | 1.831 | 8 |
25.9 | 0.998 | 7 |
A sample of 24 recently sold. The variables are: the sale price in $/10000 (Y), the size of the home in sq. ft./1000 (X1), and the number of rooms (X2).
Y |
X1 |
X2 |
29.5 |
1.5 |
7 |
… |
||
25.9 |
0.998 |
7 |
a) Calculate SSR(X2| X1).
b) Calculate SSR(X12| X1)
c) Test to see if the quadratic term is useful in the model
Y= B0 +B1X1 + B2X1^2 + E
d) Calculate SSR(X2, X1X2| X1) and MSR(X2, X1X2| X1).
e) Perform a nested models test to test H0: B2=B3=0 in the model:
Y = B0 + B1X1 + B2X2 +B3X1X2 + E
f) Which model would you use when trying to predict the sale price?
a) Regression Equation
y = 11.12 + 14.10 x1 + 0.61 x2
b) the value of SSE that is minimized by the least squares method=407.285
c) the estimate s, the standard deviation of the model=19.395
d) p-value for regression=0.001<0.05,we can say that the above model is a good one.
e) p-value for x1=0.005<0.05,so we can say x1 is important predictor to predict y
and p-value for x2=0.669,so we can say x2 does not have any significant effect to predict y
f) the coefficient of determination R2=50.87% and the adjusted coefficient of determinationRa2=39.50%
50.87% of variability of y has been explained by the multiple regression equation of x1 and x2.