A sample of 30 houses that were sold in the last year was taken. The value...

A sample of 30 houses that were sold in the last year was taken. The value of the house (Y) was estimated. The independent variables included in the analysis were the number of rooms (X1), the size of the lot (X2), the number of bathrooms (X3), and a dummy variable (X4), which equals 0 if the house does not have a garage and equals 1 otherwise. The following results were obtained: Coefficients Standard Error Intercept 15,232.5 8,462.5 X1 2,178.4 778.0 X2 7.8 2.2 X3 2,675.2 2,229.3 X4 1,157.8 463.1 Analysis of Variance DF SS MS Regression 204,242.88 51,060.72 Residual (Error) 205,890.00 8,235.60 Test whether or not there is a significant relationship between the value of a house and the independent variables. Use a 0.05 level of significance. Be sure to state the null and alternative hypotheses. (f) Test the significance of β1 at the 5% level. Be sure to state the null and alternative hypotheses. (g) Compute the coefficient of determination and interpret its meaning. (h) Estimate the value of a house that has 9 rooms, a lot with an area of 7,500, 2 bathrooms, and 2 garages.

Expert Solution

orchestra answered 1 year ago

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