1. Discuss the individual statistical significance of the coefficient for each independent variable for each of...

1. Discuss the individual statistical significance of the coefficient for each independent variable for each of the preceding simple and multiple linear regression models at a 90% level of confidence and 95% level of confidence.

Selling Price	Living Area (Sq Feet)	No. Bathrooms	No Bedrooms
$145,000	1,152	1	2
$103,000	1,290	1.5	3
$210,000	2,396	1.5	4
$559,000	3,090	4	4
$218,000	1,428	1	3
$262,138	1,631	2.5	3
$125,000	1,368	1	3
$130,000	1,134	1	3
$157,500	1,697	1.5	3
$193,000	1,666	2.5	3
$275,000	1,738	2.5	4
$240,000	1,457	1.5	2
$200,136	1,632	2.5	3
$395,000	2,186	2.5	3
$366,703	2,117	2.5	3
$103,150	936	1	3
$310,000	3,347	2.5	6
$142,900	1,824	2.5	4
$359,770	2,592	3	3

Expert Solution

orchestra answered 2 years ago

Conduct a t-test for statistical significance of the individual slope coefficients at the 1% level of significance.

SUMMARY OUTPUT Regression Statistics Multiple R 0.727076179 R Square 0.528639771 Adjusted R Square 0.525504337 Standard Error 3.573206748 Observations 455 ANOVA df SS MS F Significance F Regression 3 6458.025113 2152.67504 168.601791 2.7119E-73 Residual 451 5758.280717 12.7678065 Total 454 12216.30583 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0% Intercept -0.250148858 0.359211364 -0.6963835 0.48654745 -0.9560846 0.45578693 -1.1793476 0.67904987 RBUK 0.025079378 0.023812698 1.05319345 0.29281626 -0.0217182 0.07187699 -0.0365187 0.08667745 RSUS 0.713727515 0.042328316 16.8617037 8.0578E-50 0.6305423 0.79691273 0.60423372 0.82322131...

1. What hypothesis is being tested to determine statistical significance of a coefficient? 2. Draw a...

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