Question
(Please use Exel) thank you 3. Recode the Bedrooms categorical variable to be Bed3 = 1 if the home has three or more bedrooms and
(Please use Exel)
thank you
3. Recode the "Bedrooms" categorical variable to be Bed3 = 1 if the home has three or more bedrooms and Bed3 = 0 if it does not. Bed3 is called as Dummyvariable (indicator variable).
Excel Output (5p)
a. Run the regression analysis including the variables of price and the dummy variable, Bed3 and write the regression equation. (2p)
b. What proportion of variance in the price of the house can be explained by the number of bedrooms of the house? Is this proportion of variance statistically significant at .05 level of significance?Justify your answer. (4p)
c. Does number of bedrooms significantly predict the price of the house?Justify your answer. (4p)
d. What is the predicted price for homes with two or fewer bedrooms (Bed3 = 0)? (3p)
e. What is the predicted price for homes with three or more bedrooms (Bed3 =1)? (3p)
Id | Price ($ thousands) | SqFt | Baths | Bedrooms | Garage |
1 | 53,072 | 928 | 1 | 1 | 0 |
2 | 63,158 | 758 | 1 | 2 | 0 |
3 | 64,903 | 903 | 1 | 2 | 0 |
4 | 70,175 | 1508 | 1 | 3 | 0 |
5 | 76,991 | 1032 | 2 | 3 | 0 |
6 | 87,709 | 1093 | 1 | 3 | 0 |
7 | 95,044 | 1289 | 2 | 4 | 0 |
8 | 51,680 | 1365 | 1 | 3 | 1 |
9 | 72,990 | 699 | 1 | 2 | 1 |
10 | 73,106 | 765 | 1 | 2 | 1 |
11 | 73,609 | 781 | 1 | 2 | 1 |
12 | 74,023 | 914 | 1 | 2 | 1 |
13 | 81,283 | 928 | 1 | 3 | 1 |
14 | 82,635 | 938 | 1 | 2 | 1 |
15 | 85,195 | 1108 | 1.5 | 3 | 1 |
16 | 84,655 | 1038 | 1 | 2 | 1 |
17 | 89,541 | 1295 | 2 | 3 | 1 |
18 | 92,898 | 1023 | 1 | 3 | 1 |
19 | 94,609 | 1562 | 1 | 3 | 1 |
20 | 115,336 | 1585 | 1.5 | 3 | 1 |
21 | 120,177 | 1575 | 2.5 | 3 | 1 |
22 | 64,815 | 849 | 1 | 3 | 2 |
24 | 77,068 | 1403 | 1.5 | 3 | 2 |
25 | 81,839 | 792 | 1 | 2 | 2 |
26 | 84,771 | 869 | 1 | 2 | 2 |
27 | 84,593 | 1354 | 1 | 3 | 2 |
28 | 89,633 | 1508 | 1 | 3 | 2 |
29 | 86,802 | 1205 | 1 | 2 | 2 |
30 | 89,339 | 879 | 1 | 2 | 2 |
31 | 89,172 | 1111 | 2 | 3 | 2 |
32 | 83,770 | 1228 | 1.5 | 3 | 2 |
34 | 95,989 | 1354 | 1.5 | 3 | 2 |
35 | 99,990 | 1296 | 2 | 3 | 2 |
38 | 124,711 | 1621 | 2.5 | 3 | 2 |
44 | 79,827 | 1601 | 1 | 3 | 3 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started