(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