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Question 10 (9 marks) Show the calculation step by step The real estate profession is interested in understanding how the rent (1) and the cost

Question 10 (9 marks) Show the calculation step by step

The real estate profession is interested in understanding how the rent (1) and the cost to hold a one-bedroom apartment (2) affect the price of the one-bedroom apartment (y). He fits the model as:

= 0+ 11+ 22

Coefficients:

Estimate Std. Error t value Pr ( >|t|)

(Intercept) 176.27867 23.36940 7.543 <1.23e-9 ***

rent 0.55701 0.07114 7.830 <4.58e-10 ***

cost 0.35332 0.10118 3.492 < 0.00105 ***

Signif. codes:0 '***'0 '**'0.01'*'0.05 '.'0.1 ' '1

Residual standard error: 2.559 on 47 degrees of freedom

Multiple R-squared: 0.9994Adjusted R-squared: 0.9994

F-statistic: 4.16e04 on 2 and 47 DFp-value: < 2.2e-16

a)(3 marks) By using the above table, show how do we obtain the t-value for each coefficients.

b)(4 marks) Shall we remove the factor cost and/or rent based on its significance and why?

c)(2 marks) Which p-value corresponding to the testing of the overall significance of the model, and is it significance?

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