Question

The commercial division of a real estate firm is conducting a regression analysis of the relationship between , annual gross rents (in thousands of dollars), and , selling price (in thousands of dollars) for apartment buildings. Data were collected on several properties recently sold and the following computer output was obtained.

The regression equation is Y= 20.0 +7.25 X
Predictor	Coef	SE Coef	T
Constant	20.000	3.2213	6.21
X	7.250	1.3625	5.29
Analysis of Variance
SOURCE	DF	SS
Regression	1	41587.7
Residual Error	7
Total	8	51984.3

a. How many apartment buildings were in the sample?

b. Write the estimated regression equation (to 2 decimals if necessary).

    

c. Use the  statistic to test the significance of the relationship at a  level of significance.

What is the -value? Use Table 1 of Appendix B.

-value is - Select your answer -less than .01between .01 and .025between .025 and .05between .05 and .10greater than .10Item 4

What is your conclusion?

- Select your answer -Cannot conclude that the selling price is related to annual gross rents. OR Conclude that the selling price is related to annual gross rents.Item 5

d. Use the F statistic to test the significance of the relationship at a  level of significance.

Compute the F test statistic (to 2 decimals).

What is the -value?

-value is - Select your answer -less than .01between .01 and .025between .025 and .05between .05 and .10greater than .10Item 7

What is your conclusion?

- Select your answer -Cannot conclude that the selling price is related to annual gross rents. or Conclude that the selling price is related to annual gross rents.Item 8

e. Predict the selling price of an apartment building with gross annual rents of  (to 1 decimal).

  thousands.

Answer 1