A realtor is trying to predict the selling price of houses in Greenville (in thousands of dollars) as a function of Size
Posted: Wed May 11, 2022 8:42 am
A realtor is trying to predict the selling price of houses in
Greenville (in thousands of dollars) as a function of Size
(measured in thousands of square feet) and whether or not there is
a fireplace (FP is 0 if there is no fireplace, 1 if there is a
fireplace). Part of the regression output is provided below, based
on a sample of 20 homes. Some of the information has been
omitted.
Variable Coefficients Standard Error t-Stat P-value
Intercept 128.93746 2.6205302 49.203
8.93E-20
Size ??? 1.2072436 11.439 ???
FP 6.47601954 1.9803612 ??? ???
Which of the following statement(s) is(are) supported by the
regression output?
i) A small house with a fireplace will always sell for less than
a large house with no fireplace.
ii) At α = 0.1, FP is a significant predictor for predicting
selling price.
iii) A fireplace adds around $6,476 to the selling price on
average, when size is fixed at constant level. And this added
selling price is statistically significant at 5% level.
iv) For houses without fireplace, the average selling price
increases slower with size than houses with fireplace.
Greenville (in thousands of dollars) as a function of Size
(measured in thousands of square feet) and whether or not there is
a fireplace (FP is 0 if there is no fireplace, 1 if there is a
fireplace). Part of the regression output is provided below, based
on a sample of 20 homes. Some of the information has been
omitted.
Variable Coefficients Standard Error t-Stat P-value
Intercept 128.93746 2.6205302 49.203
8.93E-20
Size ??? 1.2072436 11.439 ???
FP 6.47601954 1.9803612 ??? ???
Which of the following statement(s) is(are) supported by the
regression output?
i) A small house with a fireplace will always sell for less than
a large house with no fireplace.
ii) At α = 0.1, FP is a significant predictor for predicting
selling price.
iii) A fireplace adds around $6,476 to the selling price on
average, when size is fixed at constant level. And this added
selling price is statistically significant at 5% level.
iv) For houses without fireplace, the average selling price
increases slower with size than houses with fireplace.