Question

In: Statistics and Probability

Suppose the following data were collected relating the selling price of a house to square footage...

Suppose the following data were collected relating the selling price of a house to square footage and whether or not the house is made out of wood. Use statistical software to find the regression equation. Is there enough evidence to support the claim that on average wood houses are more expensive than other types of houses at the 0.05 level of significance? If yes, type the regression equation in the spaces provided with answers rounded to two decimal places. Else, select "There is not enough evidence." Selling Prices of Houses Price Sqft Wood (1 if wood, 0 if otherwise) 185821 2004 1 246288 3691 1 224158 2975 1 247893 3339 0 205153 2649 0 168477 1566 0 231917 3324 1 177916 1768 1 201064 2336 1 161010 1386 0 225514 3026 1 222100 3384 0 217999 3119 1 174755 1939 0 210379 2861 0 196333 2400 0 177035 1513 1 171289 1831 0 159158 1763 0 229969 3361 1 Answer How to enter your answer Selecting a checkbox will replace the entered answer value(s) with the checkbox value. If the checkbox is not selected, the entered answer is used.

Solutions

Expert Solution

In order to solve this question I used Excel.

Step.1 Enter data in excel sheet.

Step.2 Go to 'Data' menu ---> 'Data Analysis' ---> Select 'Regression'.

Step.3 New window will pop-up on screen. Refer following screen shot and enter information accordingly.

Excel output:

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.972191
R Square 0.945155341
Adjusted R Square 0.938703029
Standard Error 7037.183105
Observations 20
ANOVA
df SS MS F Significance F
Regression 2 1.45E+10 7.25E+09 146.4832 1.92E-11
Residual 17 8.42E+08 49521946
Total 19 1.54E+10
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 109017.9385 5660.189 19.26048 5.53E-13 97075.98 120959.9
sqft 35.74563607 2.251223 15.87832 1.25E-11 30.99597 40.4953
wood 5818.720135 3273.357 1.7776 0.093362 -1087.46 12724.9

P-value for slope coefficient of wood is 0.0933, which is greater than 0.05, Hence there is not enough evidence to conclude that on average wood houses are more expensive than other types of houses at the 0.05 level of significance.


Related Solutions

Suppose the following data were collected relating the selling price of a house to square footage...
Suppose the following data were collected relating the selling price of a house to square footage and whether or not the house is made out of brick. Use statistical software to find the regression equation. Is there enough evidence to support the claim that on average brick houses are more expensive than other types of houses at the 0.050.05 level of significance? If yes, type the regression equation in the spaces provided with answers rounded to two decimal places. Else,...
Suppose the following data were collected relating the selling price of a house to square footage...
Suppose the following data were collected relating the selling price of a house to square footage and whether or not the house is made out of wood. Use statistical software to find the regression equation. Is there enough evidence to support the claim that on average wood houses are more expensive than other types of houses at the 0.05 level of significance? If yes, type the regression equation in the spaces provided with answers rounded to two decimal places. Else,...
(House Selling Price) The data below show the selling price, square footage, bedrooms, and age of...
(House Selling Price) The data below show the selling price, square footage, bedrooms, and age of houses that have sold in a neighborhood in the last six months. Selling price Square footage Bedrooms Age 64,000 1,670 2 30 59,000 1,339 2 25 61,500 1,712 3 30 79,000 1,840 3 40 87,500 2,300 3 18 92,500 2,234 3 30 95,000 2,311 3 19 113,000 2,377 3 7 115,000 2,736 4 10 138,000 2,500 3 1 142,500 2,500 4 3 144,000 2,479...
Suppose the following data were collected from a sample of 1515 houses relating selling price to...
Suppose the following data were collected from a sample of 1515 houses relating selling price to square footage and the architectural style of the house. Which of the following is the best equation to use relating the selling price of a house to square footage and the style of the house? Copy Data Housing Prices Selling Price Square Footage Colonial (1 if house is Colonial style, 0 otherwise) Ranch (1 if house is Ranch style, 0 otherwise) Victorian (1 if...
A real estate analyst estimates the following regression, relating a house price to its square footage...
A real estate analyst estimates the following regression, relating a house price to its square footage (Sqft): PriceˆPrice^ = 48.21 + 52.11Sqft; SSE = 56,590; n = 50 In an attempt to improve the results, he adds two more explanatory variables: the number of bedrooms (Beds) and the number of bathrooms (Baths). The estimated regression equation is PriceˆPrice^ = 28.78 + 40.26Sqft + 10.70Beds + 16.54Baths; SSE = 48,417; n = 50 [You may find it useful to reference the...
A real estate analyst estimates the following regression, relating a house price to its square footage...
A real estate analyst estimates the following regression, relating a house price to its square footage (Sqft): PriceˆPrice^ = 48.36 + 52.50Sqft; SSE = 56,018; n = 50 In an attempt to improve the results, he adds two more explanatory variables: the number of bedrooms (Beds) and the number of bathrooms (Baths). The estimated regression equation is PriceˆPrice^ = 28.71 + 40.44Sqft + 10.58Beds + 16.44Baths; SSE = 48,937; n = 50 [You may find it useful to reference the...
The following data gives the selling price, square footage, number of bedrooms, and the age of...
The following data gives the selling price, square footage, number of bedrooms, and the age of a house in years. These houses have been sold in a specific neighborhood over the last six months. Selling Price ($) Square Footage Bedrooms Age (years) 84,000 1,670 2 30 79,000 1,339 2 25 91,500 1,712 3 30 120,000 1,840 3 40 127,500 2,300 3 18 132,500 2,234 3 30 145,000 2,311 3 19 164,000 2,377 3 7 155,000 2,736 4 10 168,000 2,500...
The following data give the selling price and square footage of houses that have sold in...
The following data give the selling price and square footage of houses that have sold in Bend, OR in the past 6 months. Selling Price ($) Square Footage 84,000 1,670 79,000 1,339 91,500 1,712 120,000 1,840 127,500 2,300 132,500 2,234 145,000 2,311 164,000 2,377 155,000 2,736 168,000 2,500 172,500 2,500 174,000 2,479 175,000 2,400 177,500 3,124 184,000 2,500 195,500 4,062 195,000 2,854 Graph the data to see whether a linear equation might describe the relationship between selling price and the...
The data is the square footage and selling price of single-family homes for the month of...
The data is the square footage and selling price of single-family homes for the month of February and the first week of March. Square Footage Selling Price 1746 129320 1764 97000 676 35000 2788 400000 1944 68000 1960 117000 1056 148400 1564 35000 1100 165000 1120 114480 4080 175000 1442 65000 1937 60000 1900 18000 1150 258000 1650 134800 1953 30000 2424 69100 512 63000 1540 82500 1200 50000 1316 37500 1840 69000 3500 270000 5000 485000 1564 27000 1018...
2) The following data gives the selling price, square footage, number of bedrooms, and the age...
2) The following data gives the selling price, square footage, number of bedrooms, and the age of a house in years. These houses have been sold in a specific neighborhood over the last six months. Selling Price ($) Square Footage Bedrooms Age (years) 84,000 1,670 2 30 79,000 1,339 2 25 91,500 1,712 3 30 120,000 1,840 3 40 127,500 2,300 3 18 132,500 2,234 3 30 145,000 2,311 3 19 164,000 2,377 3 7 155,000 2,736 4 10 168,000...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT