The following multiple regression model was created to predict condo selling prices in South-Western part of Toronto (from High Park to South Etobicoke). The following independent variables have been selected:

• Living Area:The size of the living area in square feet
• Bedrooms:Number of bedrooms (for example, 1.5 means one bedroom and den)
• Bathrooms:The number of bathrooms (a half bath is a toilet and sink only)
• Living Area:Age of condo in years
• Distance from Subway:The distance in km from the closest subway station

The dependent variable is Condo Selling Price (in $ thousands). A random sample of 12 recently sold condos within the territory was selected. The following is the summary statistics for the table above generated from an Excel regression analysis:

SUMMARY OUTPUTRegression StatisticsMultiple R0.986901424R Square0.97397442Adjusted R Square0.952286437Standard Error23.50174395Observations12

ANOVAdfSSMSFSignificance FRegression5124021.954924804.3909744.908483240.000112314Residual63313.991813552.3319689

Total11127,335.9467130

CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Intercept-256.9243222136.8494025-1.8774237780.109545575-591.782746977.9341026Living Area0.3517931630.202456921.7376198520.132947152-0.1436010730.847187399Bedrooms278.7743508138.08829272.018812350.090048442-59.11552922616.6642308Bathrooms-69.9286595395.85367427-0.7295355140.493158886-304.4741511164.616832Age10.724138256.3816856821.6804554130.143867999-4.8912840826.33956057Distance to Subway-2.1290358525.651622687-0.3767123120.719350299-15.9580583811.69998668

Based on the Excel output, does it look that the multiple regression model is overall significant? Conduct the test at 5% significance level.

(a) State the null and alternative hypotheses, and identify which one is the claim.

H

0

H0

:Select an answer

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,,,, or

?

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H

1

H1

:Select an answer

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Which one is the claim:

• H
• 1
• H1
• H
• 0
• H0

For part (b), round your answer to 5 decimal places.

(b) What is the testP

P

-value that should be used in your hypothesis test?

(c) Is the null hypothesis rejected?

• Yes
• No

(d) Is the claim supported?

• No, at 5% significance level, there is not a significant predictor of condo selling price. The model is overall not significant.
• Yes, at 5% significance level, there is at least one significant predictor of condo selling price. The model is overall significant.

For part (e), round your answers to 4 decimal places.

(e) Write the regression equation below.

y

=

y^=

+x

1

x1

+x

2

x2

+x

3

x3

+x

4

x4

+x

5

x5

For part (f), round your final answer to 2 decimal places.

Make sure you usecorrect unitsin your calculation and present your final answer in dollars $, not in $ thousands.

(f) What would be the predicted selling price (in $) for a condo in South Etobicoke with the following parameters: 1,878 sq. ft. area, 2 bedrooms and den, 1 full bathrooms and one half bath? The condo was built 13 years ago and is located just 612 meters from Kipling subway station.