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(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

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