Coco S. A. has requested that a local property company undertake an analysis of property prices. The initial data collection has been undertaken and independent variables identified: square feet, age, and local property tax. The Excel regression analysis has been performed with the results presented in Figures 8.56–8.60.

(a) State the least squares linear regression equation ŷ = b₀ + b₁x₁ + b₂x₂.

(b) Comment on model reliability (r and COD).

(c) Is the overall model significant (F test)?

(d) Are the independent variables significant (t-tests)?

(e) Check model assumptions (residual and normality checks).

Transcribed Image Text:

G 3 SUMMARY OUTPUT 3456 Regression Statistics 6 Multiple R 7 R Square 8 Adjusted R Square 9 Standard Error 10 Observations 11 12 ANOVA 13 14 Regression 15 Residual 16 Total H 17 18 19 Intercept 20 SF 21 Age 22 PT Figure 8.56 0.9057464 0.820376542 0.807844673 19704.49335 47 df SS MS F 3 76251638632 25417212877 65.46322267 388267058 16695483496 92947122128 43 46 Significance F 4.50863E-16 M Coefficients Standard Error t Stat P-value Lower 95% Upper 95% -19930.49967 29599.11654 4834.308436 12279.91482 0.393676056 0.695765602 40.88092148 11.99641734 3.40776086 0.00143248 16.68784051 65.07400244 -176.7561806 266.9396479 -0.66215784 0.511403472 -715.0912794 361.5789182 51.57131245 20.27040468 2.544167878 0.014628263 10.69214598 92.45047893