From the OLS results, the following conclusions can be drawn:

with

this model is for houses in the Penang area, where Y is the price of the house (in thousand ringgit), X1 is the area of the house (per 10m2), X2 is the number of bedrooms, X3 is the number of bathrooms, X4 is the total number of rooms, X5 is the age of the house owner.

Question:

1. Do a hypothesis test for the model!

2. Interpret the results of the hypothesis test!

3. If Mr. Jarjit (45 years old) is surveying to buy a house in the Penang area and during the inspection, Mr. Jarjit gets information that the area of the house is 400 m2 with four bedrooms, two bathrooms, plus a living room, a dining room and a kitchen. How much is the house? Do econometric procedures to answer the questions above!

4. Interpret the determinant coefficient of the model!

Predictor Constant X1 X2 X3 X4 Xs Coefficient -21.83 2.9326 2.401 -8.747 9.449 -0.0001 St Dev 10.14 0.3335 2.902 3.820 2.568 0.3169 t-ratio -2.15 8.79 0.83 -2.29 3.68 -0.00 Predictor Constant X1 X2 X3 X4 Xs Coefficient -21.83 2.9326 2.401 -8.747 9.449 -0.0001 St Dev 10.14 0.3335 2.902 3.820 2.568 0.3169 t-ratio -2.15 8.79 0.83 -2.29 3.68 -0.00