Question
Let me know the Hypothesis test explanation is correct. Is there a significant relationship between the Price Per Square Foot of a house (a) The
Let me know the Hypothesis test explanation is correct.
- Is there a significant relationship between the Price Per Square Foot of a house (a) The age of the house (b) the number of bedrooms (c) the size of the garage and (d) the Size of the House?
Model Summary | ||||
---|---|---|---|---|
Model | R | R Square | Adjusted R Square | Std. Error of the Estimate |
1 | .591a | .349 | .324 | 7.713947 |
a. Predictors: (Constant), How Many Cars Can Fit in the Garrage, Number of Bedrooms, Age of House in Years, Living Space in Square Feet |
Coefficients | |||||
---|---|---|---|---|---|
Unstandardized Coefficients | Z | Sig. | |||
B | Std. Error | Beta | |||
(Constant) | 53.789 | 6.090 | 8.833 | .000 | |
Living Space in Square Feet | -.015 | .002 | -.697 | -7.170 | .000 |
Age of House in Years | -.625 | .181 | -.310 | -3.456 | .001 |
Number of Bedrooms | 4.120 | 1.215 | .300 | 3.391 | .001 |
How Many Cars Can Fit in the Garage | 10.339 | 2.489 | .367 | 4.154 | .000 |
a. Dependent Variable: Price per Square Foot |
Price = 53.789 - 0.015 (Size) - .625 (Age) + 4.120(Bed) + 10.399(Cars) +
(8.833) (-7.170) (-3.456) (3.391) (4.154)
R2 = .349 (34.9%)=> Garage34.9% of Changes in the Price of houses is explained by changes in the variables in the equation
Hypothesis Tests.
H0: = 0=> Size of Living Space does not significantly affect Price of House
H0: 0=> Size of Living Space significantly affects Price of House
Level of Significance (1%) .015=> Z* = 0.00
Decision Rule: If Z Z* == Reject the Null Hypothesis
Conclusion=> Since Z (8.833) > Z* (0.00) I reject the H0 and conclude that Size of House significantly affects its Price.
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