2 Model Selection Your Task Is To Look Over Two Alternative Models And Select The Best One Assume That A Realtor Is 1 (53.85 KiB) Viewed 13 times
2 Model Selection Your Task Is To Look Over Two Alternative Models And Select The Best One Assume That A Realtor Is 2 (53.12 KiB) Viewed 13 times
2-Model Selection: Your task is to look over two alternative models and select the "best" one. Assume that a realtor is attempting to determine which equation she should use to predict the selling price of a new home. She generates two regressions shown below. Regression 1 relates sales price to heated square feet of the house. Regression 2 relates sales price to the age of the home. Using the information below determine: 1) Which of these regressions should she use? 2) Justify your decision by explaining how the various hypothesis tests, measures of the explanatory power, and measures of how well the data "fits" the regression line. Regression 1 Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.795744275 0.633208951 0.627195983 21.3824224 63
Intercept Square Feet Regression 2 Regression Multiple R R Square Adjusted R Square Standard Error Observations Intercept Age in Years Coefficients -3.721029278 Statistics 0.054770494 0.00533725 0.326126627 0.106358577 0.091708717 33.37560801 63 Standard Error 8.480862642 Coefficients Standard Error 94.00584476 7.037243088 -0.483771828 0.379544061 t Stat P-value -0.438755989 0.66238849 t Stat 10.26193066 6.57029E-15 P-value 13.35833416 9.0323E-20 -1.274613089 0.207281374
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!