Question 3 Bluereef real estate agent wants to form a relationship between the prices of houses, how many bedrooms, House size in sq ft and Lot Size in sq ft. The data pertaining to 100 houses were processed using MINITAB and the following is an extract of the output obtained: The regression equation is Price = ß + Bedroom + yHouse Size + ALot Size Predictor Coef SE Coef T P Constant 37718 2.66 ** Bedrooms 0.33 * House Size Lot Size S= 25023 Source Regression Residual Error Total DF 3 96 99 2306 74.3 -4.36 R-Sq=56.0% 14177 6994 52.98 17.02 60109046053 0.742 0.164 -0.26 0.798 R-Sq (adj)=54.6% SS MS F *** 76501718347 25500572782 626135896 P **** a) Write out the regression equation. b) Fill in the missing values *, **, *** and ****. c) Use the p-value approach to determine if & is significant at the 5% significance level f) Give an interpretation to the term "R-sq" and comment on its value. d) Is y significantly different from -0.5? e) Perform the F test at the 1% level, making sure to state the null and alternative hypotheses.

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Question 3
Bluereef real estate agent wants to form a relationship between the prices of houses, how many
bedrooms, House size in sq ft and Lot Size in sq ft.
The data pertaining to 100 houses were processed using MINITAB and the following is an extract
of the output obtained:
The regression equation is Price = ß+ Bedroom + yHouse Size + λLot Size
Predictor
Coef
SE Coef
T
P
Constant
37718
2.66
0.33
Bedrooms
2306
74.3
*
-4.36
House Size
Lot Size
S= 25023
Source
Regression
Residual
Error
Total
DF
3
R-Sq=56.0%
SS
76501718347
96 60109046053
99
14177
6994
52.98
17.02
R-Sq (adj)=54.6%
MS
25500572782
626135896
0.742
0.164
-0.26 0.798
F
***
**
P
****
a) Write out the regression equation.
b) Fill in the missing values *, **, *** and ****.
c) Use the p-value approach to determine if & is significant at the 5% significance level
f) Give an interpretation to the term "R-sq" and comment on its value.
d) Is y significantly different from -0.5?
e) Perform the F test at the 1% level, making sure to state the null and alternative hypotheses.
Transcribed Image Text:Question 3 Bluereef real estate agent wants to form a relationship between the prices of houses, how many bedrooms, House size in sq ft and Lot Size in sq ft. The data pertaining to 100 houses were processed using MINITAB and the following is an extract of the output obtained: The regression equation is Price = ß+ Bedroom + yHouse Size + λLot Size Predictor Coef SE Coef T P Constant 37718 2.66 0.33 Bedrooms 2306 74.3 * -4.36 House Size Lot Size S= 25023 Source Regression Residual Error Total DF 3 R-Sq=56.0% SS 76501718347 96 60109046053 99 14177 6994 52.98 17.02 R-Sq (adj)=54.6% MS 25500572782 626135896 0.742 0.164 -0.26 0.798 F *** ** P **** a) Write out the regression equation. b) Fill in the missing values *, **, *** and ****. c) Use the p-value approach to determine if & is significant at the 5% significance level f) Give an interpretation to the term "R-sq" and comment on its value. d) Is y significantly different from -0.5? e) Perform the F test at the 1% level, making sure to state the null and alternative hypotheses.
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