For the sample data use Excel to find the mean price, square footage, number of bedrooms, and number of bathrooms. (Cut&Paste the Excel output to the answer sheet.) Average Price Square Feet Beds 2. a) Calculate and interpret the sample correlation coefficient between the price and square footage. b) Specify the competing hypotheses in order to determine whether the population correlation between the price and square footage differs from 0. c) Calculate the value of the test statistics and the p-value. Baths (b) Model 2: Price=B + B Baths d) At the 5% significance level, what is the conclusion to the test? (c) Model 3: Price=B + B Beds 3. Use EXCEL to estimate the following three models. Round the coefficients to the nearest whole number. (Cut&Paste the EXCEL output to the answer sheet.) (a) Model 1: Price=B+B Sqft 4. For Model 1 and Model 3, interpret the coefficients (slope and intercept). 5. (a) Fill in the table below with the Standard Error of the estimate and R given by EXCEL for each model. (Cut$Paste the EXCEL output to the answer sheet.) Model 1 Model 2 Model 3 Standard Error (b) Based on you answer in (a) determine the best model for predicting Price. Explain briefly. (b) Model 2 R 6. Use each model to estimate the price of a 2000 square foot house with 3 bedrooms and 2 bathrooms. (a) Model 1 (c) Model 3 Price Sqft 784000 2583 822000 2500 713000 2400 689000 2200 685000 2716 645000 2524 432692 1891 454667 1786 718056 2567 585000 1947 583000 2224 379333 2175 764400 2509 780000 2149 537000 2907 516000 1951 738111 2531 714000 2418 495000 1692 463000 1714 639800 2310 631400 2359 435000 1500 431700 1896 414000 1182 401500 1152 478800 1660 253333 896 285000 954 375900 2275 620000 1675 459375 1590 356500 1431 412500 1703 412500 1831 307500 850 Beds 4 4 3 3 3 3 3 3 3 3 3 3 4 4 3 4 4 4 3 3 4 4 3 2 2 3 4 3 2 5 3 3 2 3 3 1 Baths 3.0 2.5 3.0 2.5 3.5 2.0 1.5 2.5 2.5 1.5 2.5 1.0 3.0 2.5 2.5 2.0 2.5 3.0 2.0 2.0 3.0 3.0 1.5 1.5 1.5 1.0 2.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 1.0