Question
PLEASE SHOW EXPLAINATION FOR ANSWERS. This assignment extends the analysis of house prices in Springfield (data in House Prices.xlsx ) that was conducted in earlier
PLEASE SHOW EXPLAINATION FOR ANSWERS.
This assignment extends the analysis of house prices in Springfield (data in House Prices.xlsx) that was conducted in earlier assignments.
(a) Consider Model 1 from Individual Assignment 2.Use this regression model to test (at the 5% level of significance) if the average price of a house in the East neighborhood is less than the average pric e of a similar house in the North neighborhood.
Model 1 Output
State the null and alternative hypotheses.
State the p-value for this test.
State the statistical conclusion.
Communicate the results of the test in "plain English" within the context of the problem.
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.930384625
R Square
0.86561555
Adjusted R Square
0.857776457
Standard Error
50660.95358
Observations
128
ANOVA
df
SS
MS
F
Significance F
Regression
7
1.98383E+12
2.83404E+11
110.4229
3.17667E-49
Residual
120
3.07984E+11
2566532218
Total
127
2.29181E+12
Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Lower 95.0%
Upper 95.0%
Intercept
-12055.20512
44691.44115
-0.269743038
0.787821
-100541.1483
76430.74
-100541
76430.74
SqFt
274.4720171
28.71182947
9.559544697
1.93E-16
217.624593
331.3194
217.6246
331.3194
Bedrooms
24088.33576
7944.589907
3.032042691
0.002977
8358.600646
39818.07
8358.601
39818.07
Bathrooms
37363.03284
10792.47277
3.461952939
0.000744
15994.68785
58731.38
15994.69
58731.38
Offers
-40757.52654
5519.172415
-7.384717032
2.21E-11
-51685.10382
-29829.9
-51685.1
-29829.9
Brick Coded
85958.21519
10054.72173
8.549039696
4.7E-14
66050.56593
105865.9
66050.57
105865.9
East coded
-12020.22191
12314.42924
-0.976108732
0.330974
-36401.93479
12361.49
-36401.9
12361.49
west coded
99685.90872
15680.03715
6.357504628
3.86E-09
68640.52643
130731.3
68640.53
130731.3
(b)Consider Model 2 from Individual Assignment 2.Use this regression model to test (at the 5% level of significance) if the brick premium in the West exceeds the brick premium in the North.
Model 2 Output
State the null and alternative hypotheses.
State the p-value for this test.
State the statistical conclusion.
Communicate the results of the test in "plain English" within the context of the problem.
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.934623672
R Square
0.873521408
Adjusted R Square
0.863874736
Standard Error
49562.93089
Observations
128
ANOVA
df
SS
MS
F
Significance F
Regression
9
2.00195E+12
2.22E+11
90.55158
1.01432E-48
Residual
118
2.89865E+11
2.46E+09
Total
127
2.29181E+12
Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Lower 95.0%
Intercept
-89.79829617
44216.901
-0.00203
0.998383
-87651.3003
87471.704
-87651.3
SqFt
276.8302333
28.2262254
9.807554
5.74E-17
220.9346225
332.72584
220.9346
Bedrooms
26192.77172
7825.496458
3.347107
0.001096
10696.15825
41689.385
10696.16
Bathrooms
30094.14158
10894.6699
2.762281
0.00666
8519.729105
51668.554
8519.729
Offers
-41398.0651
5412.84349
-7.64812
6.05E-12
-52116.96885
-30679.161
-52117
Brick Coded
60960.29572
20572.89716
2.963136
0.003684
20220.35839
101700.23
20220.36
East coded
-8085.045065
13899.72344
-0.58167
0.561899
-35610.28167
19440.192
-35610.3
west coded
81298.35221
16849.02308
4.825108
4.23E-06
47932.69938
114664.01
47932.7
Brick*East
9080.366235
25423.74171
0.357161
0.721609
-41265.56394
59426.296
-41265.6
Brick*west
61854.24045
26704.64404
2.316235
0.022271
8971.774935
114736.71
8971.775
(c) Consider Model 2 from Individual Assignment 2.Use this regression model to test (at the 5% level of significance) if the average increase in price for a 1 square foot increase in floor area is less than $300 per square foot.
State the null and alternative hypotheses.
Compute the test statistic.
Compute the p-value for this test.
State the Excel function (specifying all inputs) that will compute this probability.
State the statistical conclusion.
Communicate the results of the test in "plain English" within the context of the problem.
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