Model Summary Rent R R Square Adjusted R Square 64 41 41 Anova Rent Regression Residual Total Coefficients Rent 1 (586.05 KiB) Viewed 38 times
Results for a multivariate regression model predicting monthlyrent based on several variables are shown above. For yourconvenience, here are definitions for each variable. Y = Rent =monthly rent payment measured in dollars X1 = Family_Size: thenumber of people living in the apartment X2 = Income = familyincome measured in dollars X3 = Southwest = a dummy variable equalto one if the apartment is in the Southwest region of the UnitedStates X4 = Northwest = a dummy variable equal to one if theapartment is in the Northwest region X5 = Northeast = a dummyvariable equal to one if the apartment is in the Northeast region***The base category is living in the Southeast region" ***(Questions) (a) Using the test statistic method, do a hypothesistest for whether there is a statistically significant relationshipbetween family size and monthly rent. Show all steps to yourhypothesis test and use a significance level of 5%. (5 points) (b)Type the value of the y-intercept and explain the meaning of thatnumber. (4 points) (c) Is the following statement TRUE or FALSE?Explain your answer. (5 points) "This regression model fails tocontrol for the effect of living in the Southeast region of the USwhen estimating monthly rates of rent. "
Model Summary (Rent) R R Square Adjusted R Square .64 .41 .41 ANOVA (Rent) Regression Residual Total Coefficients (Rent) (Constant) Family Size Income Sum of Squares df 25947092.50 5 36842922.05 494 62790014.55 499 Southwest Northwest Northeast Std. Error of the Estimate 273.09 581.45 -13.17 .00 356.63 492.94 238.11 Mean Square F Sig. 5189418.50 69.58 .000 74580.81 Unstandardized Coefficients B Std. Error 47.97 7.85 .00 39.19 45.90 35.56 Standardized Coefficients Beta Sig. .00 12.12 .000 -.06 -1.68 .094 .17 3.58 .000 .44 9.10 .000 .60 10.74 .000 .29 6.70 .000
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