Question
In: Statistics and Probability
The data below id from 128 recent sales in Mid City. For each sale, it shows...
The data below id from 128 recent sales in Mid City. For each sale, it shows the neighborhood (1, 2, or 3) of the house, # of offers made on the house, sq. footage, whether house is primarily made of brick, # of bathrooms, # of bedrooms, & selling price. Â Neghborhoods 1 & 2 are traditional, 3 is newer/more prestigious. Use regression to estimate & interpret the pricing structure of houses in Mid City.
Q5. Run a multiple regression model that predicts price based on SqFt and number of Bedrooms. In this model both predictors are statistically insignificant. TRUE or FALSE
| Home | Nbhd | Offers | Sq Ft | Brick | Bedrooms | Bathrooms | Price |
| 1 | 2 | 2 | 1790 | No | 2 | 2 | 228600 |
| 2 | 2 | 3 | 2030 | No | 4 | 2 | 228400 |
| 3 | 2 | 1 | 1740 | No | 3 | 2 | 229600 |
| 4 | 2 | 3 | 1980 | No | 3 | 2 | 189400 |
| 5 | 2 | 3 | 2130 | No | 3 | 3 | 239600 |
| 6 | 1 | 2 | 1780 | No | 3 | 2 | 229200 |
| 7 | 3 | 3 | 1830 | Yes | 3 | 3 | 303200 |
| 8 | 3 | 2 | 2160 | No | 4 | 2 | 301400 |
| 9 | 2 | 3 | 2110 | No | 4 | 2 | 238400 |
| 10 | 2 | 3 | 1730 | No | 3 | 3 | 208000 |
| 11 | 2 | 3 | 2030 | Yes | 3 | 2 | 265000 |
| 12 | 2 | 2 | 1870 | Yes | 2 | 2 | 246000 |
| 13 | 1 | 4 | 1910 | No | 3 | 2 | 205200 |
| 14 | 1 | 5 | 2150 | Yes | 3 | 3 | 252600 |
| 15 | 3 | 4 | 2590 | No | 4 | 3 | 353600 |
| 16 | 3 | 1 | 1780 | No | 4 | 2 | 291600 |
| 17 | 2 | 4 | 2190 | Yes | 3 | 3 | 294200 |
| 18 | 1 | 4 | 1990 | No | 3 | 3 | 167200 |
| 19 | 2 | 1 | 1700 | Yes | 2 | 2 | 222800 |
| 20 | 3 | 2 | 1920 | Yes | 3 | 3 | 334400 |
| 21 | 2 | 3 | 1790 | No | 3 | 2 | 232400 |
| 22 | 1 | 4 | 2000 | No | 3 | 2 | 227600 |
| 23 | 1 | 3 | 1690 | No | 3 | 2 | 183400 |
| 24 | 1 | 3 | 1820 | Yes | 3 | 2 | 212200 |
| 25 | 2 | 2 | 2210 | Yes | 4 | 3 | 312800 |
| 26 | 1 | 3 | 2290 | No | 4 | 3 | 298600 |
| 27 | 3 | 3 | 2000 | No | 4 | 2 | 274000 |
| 28 | 2 | 2 | 1700 | No | 3 | 2 | 198600 |
| 29 | 1 | 3 | 1600 | No | 2 | 2 | 138200 |
| 30 | 3 | 1 | 2040 | Yes | 4 | 3 | 376000 |
| 31 | 3 | 3 | 2250 | Yes | 4 | 3 | 364000 |
| 32 | 1 | 2 | 1930 | Yes | 2 | 2 | 224600 |
| 33 | 2 | 3 | 2250 | Yes | 3 | 3 | 270000 |
| 34 | 2 | 4 | 2280 | Yes | 5 | 3 | 279200 |
| 35 | 1 | 3 | 2000 | No | 2 | 2 | 235600 |
| 36 | 1 | 3 | 2080 | No | 3 | 3 | 234200 |
| 37 | 1 | 2 | 1880 | No | 2 | 2 | 235000 |
| 38 | 3 | 4 | 2420 | No | 4 | 3 | 294000 |
| 39 | 3 | 1 | 1720 | No | 3 | 2 | 262600 |
| 40 | 1 | 2 | 1740 | No | 3 | 2 | 216400 |
| 41 | 2 | 1 | 1560 | No | 2 | 2 | 213200 |
| 42 | 3 | 2 | 1840 | No | 4 | 3 | 267200 |
| 43 | 2 | 3 | 1990 | No | 2 | 2 | 211200 |
| 44 | 2 | 1 | 1920 | Yes | 3 | 2 | 308000 |
| 45 | 3 | 2 | 1940 | Yes | 3 | 3 | 333000 |
| 46 | 2 | 3 | 1810 | No | 3 | 2 | 206400 |
| 47 | 1 | 2 | 1990 | No | 2 | 3 | 259600 |
| 48 | 1 | 6 | 2050 | No | 3 | 2 | 180600 |
| 49 | 2 | 2 | 1980 | No | 2 | 2 | 231800 |
| 50 | 1 | 3 | 1700 | Yes | 3 | 2 | 215000 |
| 51 | 2 | 3 | 2100 | Yes | 3 | 2 | 302200 |
| 52 | 1 | 3 | 1860 | No | 2 | 2 | 182200 |
| 53 | 1 | 4 | 2150 | No | 2 | 3 | 234800 |
| 54 | 1 | 3 | 2100 | No | 3 | 2 | 261600 |
| 55 | 1 | 3 | 1650 | No | 3 | 2 | 162600 |
| 56 | 2 | 2 | 1720 | Yes | 2 | 2 | 251400 |
| 57 | 2 | 3 | 2190 | Yes | 3 | 2 | 281800 |
| 58 | 3 | 3 | 2240 | No | 4 | 3 | 304600 |
| 59 | 3 | 1 | 1840 | No | 3 | 3 | 276200 |
| 60 | 3 | 1 | 2090 | No | 4 | 2 | 310800 |
| 61 | 3 | 1 | 2200 | No | 3 | 3 | 361800 |
| 62 | 1 | 2 | 1610 | No | 2 | 2 | 201800 |
| 63 | 3 | 2 | 2220 | No | 4 | 3 | 322600 |
| 64 | 2 | 2 | 1910 | No | 2 | 3 | 241000 |
| 65 | 3 | 2 | 1860 | No | 3 | 2 | 260600 |
| 66 | 1 | 1 | 1450 | Yes | 2 | 2 | 222200 |
| 67 | 1 | 4 | 2210 | No | 3 | 3 | 252400 |
| 68 | 2 | 3 | 2040 | No | 4 | 3 | 303800 |
| 69 | 1 | 4 | 2140 | No | 3 | 2 | 187200 |
| 70 | 3 | 3 | 2080 | No | 4 | 3 | 331200 |
| 71 | 3 | 3 | 1950 | Yes | 3 | 3 | 333400 |
| 72 | 3 | 1 | 2160 | No | 4 | 2 | 315200 |
| 73 | 1 | 3 | 1650 | No | 3 | 2 | 214600 |
| 74 | 2 | 2 | 2040 | No | 3 | 3 | 251400 |
| 75 | 3 | 3 | 2140 | No | 3 | 3 | 288400 |
| 76 | 1 | 2 | 1900 | No | 2 | 2 | 213800 |
| 77 | 3 | 2 | 1930 | No | 3 | 2 | 259600 |
| 78 | 3 | 3 | 2280 | Yes | 4 | 3 | 353000 |
| 79 | 1 | 3 | 2130 | No | 3 | 2 | 242600 |
| 80 | 3 | 1 | 1780 | No | 4 | 2 | 287200 |
| 81 | 2 | 4 | 2190 | Yes | 3 | 3 | 286800 |
| 82 | 3 | 2 | 2140 | Yes | 4 | 3 | 368600 |
| 83 | 3 | 1 | 2050 | Yes | 2 | 2 | 329600 |
| 84 | 2 | 2 | 2410 | No | 3 | 3 | 295400 |
| 85 | 1 | 3 | 1520 | No | 2 | 2 | 181000 |
| 86 | 3 | 2 | 2250 | Yes | 4 | 3 | 376600 |
| 87 | 1 | 4 | 1900 | No | 4 | 2 | 205400 |
| 88 | 3 | 1 | 1880 | Yes | 3 | 3 | 345000 |
| 89 | 1 | 2 | 1930 | No | 3 | 3 | 255400 |
| 90 | 1 | 4 | 2010 | No | 2 | 2 | 195600 |
| 91 | 3 | 2 | 1920 | No | 4 | 2 | 286200 |
| 92 | 2 | 2 | 2150 | No | 3 | 2 | 233000 |
| 93 | 3 | 2 | 2110 | No | 3 | 2 | 285200 |
| 94 | 2 | 2 | 2080 | No | 3 | 3 | 314200 |
| 95 | 3 | 3 | 2150 | Yes | 4 | 3 | 321200 |
| 96 | 3 | 1 | 1970 | Yes | 2 | 2 | 305000 |
| 97 | 2 | 3 | 2440 | No | 3 | 3 | 266600 |
| 98 | 2 | 1 | 2000 | Yes | 2 | 2 | 253600 |
| 99 | 3 | 1 | 2060 | No | 3 | 2 | 291000 |
| 100 | 3 | 2 | 2080 | Yes | 3 | 3 | 342000 |
| 101 | 1 | 5 | 2010 | No | 3 | 2 | 206400 |
| 102 | 2 | 5 | 2260 | No | 3 | 3 | 246200 |
| 103 | 2 | 4 | 2410 | No | 3 | 3 | 273600 |
| 104 | 3 | 3 | 2440 | Yes | 4 | 3 | 422400 |
| 105 | 2 | 4 | 1910 | No | 3 | 2 | 164600 |
| 106 | 3 | 4 | 2530 | No | 4 | 3 | 293800 |
| 107 | 1 | 4 | 2130 | No | 3 | 2 | 217000 |
| 108 | 2 | 1 | 1890 | Yes | 3 | 2 | 268000 |
| 109 | 2 | 3 | 1990 | Yes | 3 | 3 | 234000 |
| 110 | 2 | 3 | 2110 | No | 3 | 2 | 217400 |
| 111 | 1 | 1 | 1710 | No | 2 | 2 | 223200 |
| 112 | 1 | 2 | 1740 | No | 2 | 2 | 229800 |
| 113 | 2 | 2 | 1940 | Yes | 2 | 2 | 247200 |
| 114 | 1 | 3 | 2000 | Yes | 3 | 2 | 231400 |
| 115 | 2 | 2 | 2010 | No | 4 | 3 | 249000 |
| 116 | 1 | 3 | 1900 | No | 3 | 3 | 205000 |
| 117 | 3 | 1 | 2290 | Yes | 5 | 4 | 399000 |
| 118 | 1 | 2 | 1920 | No | 3 | 2 | 235600 |
| 119 | 1 | 3 | 1950 | Yes | 3 | 2 | 300400 |
| 120 | 1 | 4 | 1920 | No | 2 | 2 | 219400 |
| 121 | 1 | 3 | 1930 | No | 2 | 3 | 220800 |
| 122 | 2 | 3 | 1930 | No | 3 | 3 | 211200 |
| 123 | 2 | 1 | 2060 | Yes | 2 | 2 | 289600 |
| 124 | 2 | 3 | 1900 | Yes | 3 | 3 | 239400 |
| 125 | 2 | 3 | 2160 | Yes | 4 | 3 | 295800 |
| 126 | 1 | 2 | 2070 | No | 2 | 2 | 227000 |
| 127 | 3 | 1 | 2020 | No | 3 | 3 | 299800 |
| 128 | 1 | 4 | 2250 | No | 3 | 3 | 249200 |
Solutions
Expert Solution
Solution: We can use the excel regression data analysis tool to run the multiple regression model that predicts the price based on Sq Ft and the number of Bedrooms. The excel output is given below:
| SUMMARY OUTPUT | ||||||
| Regression Statistics | ||||||
| Multiple R | 0.6269 | |||||
| R Square | 0.3930 | |||||
| Adjusted R Square | 0.3832 | |||||
| Standard Error | 42202.0994 | |||||
| Observations | 128 | |||||
| ANOVA | ||||||
| df | SS | MS | F | Significance F | ||
| Regression | 2 | 144113707570.10 | 72056853785.05 | 40.458 | 0.0000 | |
| Residual | 125 | 222627149617.40 | 1781017196.94 | |||
| Total | 127 | 366740857187.50 | ||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |
| Intercept | -12735.193 | 35655.830 | -0.357 | 0.722 | -83302.504 | 57832.118 |
| Sq Ft | 98.998 | 20.225 | 4.895 | 0.000 | 58.971 | 139.025 |
| Bedrooms | 24972.116 | 5894.269 | 4.237 | 0.000 | 13306.627 | 36637.605 |
Q5. Run a multiple regression model that predicts the price based on SqFt and the number of Bedrooms. In this model, both predictors are statistically insignificant.
Answer: FALSE, because the p-value for both these variables is less than the significance level. Therefore, both the variables are significant
orchestra answered 2 years agoRelated Solutions
The data below id from 128 recent sales in Mid City. For each sale, it shows...
The data below id from 128 recent sales in Mid City. For each
sale, it shows the neighborhood (1, 2, or 3) of the house, # of
offers made on the house, sq. footage, whether house is primarily
made of brick, # of bathrooms, # of bedrooms, & selling price.
Neghborhoods 1 & 2 are traditional, 3 is newer/more
prestigious. Use regression to estimate & interpret the
pricing structure of houses in Mid City.
Q1. Predict Price (dependent variable) as...
The data below id from 128 recent sales in Mid City. For each sale, it shows...
The data below id from 128 recent sales in Mid City. For each
sale, it shows the neighborhood (1, 2, or 3) of the house, # of
offers made on the house, sq. footage, whether house is primarily
made of brick, # of bathrooms, # of bedrooms, & selling price.
 Neghborhoods 1 & 2 are traditional, 3 is newer/more
prestigious. Use regression to estimate & interpret the
pricing structure of houses in Mid City.
Q2. Predict Price using SqFt...
The data below id from 128 recent sales in Mid City. For each sale, it shows...
The data below id from 128 recent sales in Mid City. For each
sale, it shows the neighborhood (1, 2, or 3) of the house, # of
offers made on the house, sq. footage, whether house is primarily
made of brick, # of bathrooms, # of bedrooms, & selling price.
 Neghborhoods 1 & 2 are traditional, 3 is newer/more
prestigious. Use regression to estimate & interpret the
pricing structure of houses in Mid City.
Q3. Based on the regression...
The data below id from 128 recent sales in Mid City. For each sale, it shows...
The data below id from 128 recent sales in Mid City. For each
sale, it shows the neighborhood (1, 2, or 3) of the house, # of
offers made on the house, sq. footage, whether house is primarily
made of brick, # of bathrooms, # of bedrooms, & selling price.
 Neghborhoods 1 & 2 are traditional, 3 is newer/more
prestigious. Use regression to estimate & interpret the
pricing structure of houses in Mid City.
Q4. Based on the regression...
Homes for Sale The dataset HomesForSale has data on houses available for sale in three Mid-Atlantic...
Homes for Sale
The dataset HomesForSale has data on houses
available for sale in three Mid-Atlantic states (NY, NJ, and PA).
Table 1 shows the mean and standard deviation from the three
Mid-Atlantic states, in thousands of dollars. Use this table, the
knowledge that within the US the average house sells for about 265
thousand dollars1, and a 5% significance level to answer
the following questions.
State
n
Mean
Std. Dev.
New York
30
565.6
697.6
New Jersey
30
388.5...
Below is a table that shows ‘for’ and ‘against’ opinions on the topic: ‘City life is...
Below is a table that shows ‘for’ and ‘against’ opinions on the
topic: ‘City life is better than village
life. Discuss.’
Write an essay of about 250 words using ONLY the ideas given in the
table. You must write your
opinion in the conclusion
For------------------------------------- Against
Better facilities -------------------- Very noisy and crowded
More friends ---------------------- Too much traffic
More modern --------------------- Too much pollution
Better opportunities for jobs ---Very expensive
The table below shows the scores of 25 Mathematics students in two mid-term tests and the...
The table below shows the scores of 25 Mathematics students in
two mid-term tests and the Final test score.
Test 1
Test 2
Final Test
75
69
76
95
75
93
91
78
90
98
84
98
75
57
71
54
39
51
71
63
75
48
48
58
89
68
88
81
60
82
71
60
71
72
56
71
95
81
92
81
69
76
72
63
74
95
76
96
80
64
74
83
77
92
90...
5 people from group are given an ID ranging from 1-9 independent from each other's ID....
5 people from group are given an ID ranging from 1-9 independent
from each other's ID. What is the probability that at least 2
people share an ID number?
The table below shows data collected on the vessel calls for a port in Ghana, from...
The table below shows data collected on the vessel calls for a
port in Ghana, from 2007-2016 to study the relationship between the
number of Commercial Vessels (C.V.) and Offshore Vessels (O. V.).
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 C. V. (X)
527 486 481 558 623 611 606 543 615 673 O. V. (Y ) 67 129 475 719
1175 1053 758 844 910 928 Assuming a linear regression model E(Y |X
= x)...
The table shows the number of days on the market for the 36 recent home sales...
The table shows the number of days on the market for the 36
recent home sales in the city of Sonando Hills.
22
13
30
165
104
54
123
38
7
116
176
178
47
156
20
12
165
19
113
53
48
8
46
29
24
31
137
29
2
175
28
55
117
38
70
145
(a1) Construct a frequency distribution and
histogram, using nice (round) bin limits. (Round your
"percent" answers to 1 decimal place.)
Days on...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Cornerstone Exercise 4.1 (Algorithmic) Applied Overhead and Unit Overhead Cost: Plantwide Rates Seco, Inc., produces two...
- 1. Price Discrimination - Two Parts Pricing: Xerox In early days, the Xerox Corporation faced the...
- answer the following using C# Design and program a Visual Studio Console project in C# that...
- Write a program that acts as a basic calculator Assume the starting result is 0 Ask...
- Explain the following business terms: Explain what attestation means in business. Explain what assurance means in...
- Write a program to carry out the stated task: When one of the buttons is pressed,...
- The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities,...
ADVERTISEMENT