A real estate analyst estimates the following regression, relating a house price to its square footage (Sqft):
Question:
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In an attempt to improve the results, he adds two more explanatory variables: the number of bedrooms (Beds) and the number of bathrooms (Baths). The estimated regression equation is
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SSE = 48,074; n = 50
a. Formulate the hypotheses to determine whether Beds and Baths are jointly significant in explaining Price.
b. Calculate the value of the test statistic.
c. At the 5% significance level, find the critical value(s).
d. What is the conclusion to the test?
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a H 0 2 3 0 H A At least one of the coefficients is nonzero b df 1 2 because there are 2 res...View the full answer
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Related Book For 
Business Statistics Communicating With Numbers
ISBN: 9780078020551
2nd Edition
Authors: Sanjiv Jaggia, Alison Kelly
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