Question
Using the below Excel dataset, run two different simple linear regressions using price as the Y variable in each and sqrft and lotsize as the
Using the below Excel dataset, run two different simple linear regressions using price as the Y variable in each and sqrft and lotsize as the X variables.
Q1) Which regression of the two do you think is "best"?
Show your work and explain.
For the regression you felt was best, answer the following questions.
Q2) Provide the "SUMMARY OUTPUT" generated by the Excel regression command and explain what each number is in this output and how they are related to one another.
- Is the intercept statistically significantly different from zero at the 5% level? Explain.
- Is the slope statistically significantly different from zero at the 1% level? Explain.
- Is the slope statistically significantly different from 0.5 at the 10% level? Explain.
- Is the intercept statistically significantly smaller than 90 at the 1% level? Explain.
- What is the 90% confidence interval for the slope?
- What is the predicted price given the average level of your X variable?
Excel Dataset
| price | sqrft | lotsize | bdrms |
| 300 | 2438 | 6126 | 4 |
| 370 | 2076 | 9903 | 3 |
| 191 | 1374 | 5200 | 3 |
| 195 | 1448 | 4600 | 3 |
| 373 | 2514 | 6095 | 4 |
| 466.275 | 2754 | 8566 | 5 |
| 332.5 | 2067 | 9000 | 3 |
| 315 | 1731 | 6210 | 3 |
| 206 | 1767 | 6000 | 3 |
| 240 | 1890 | 2892 | 3 |
| 285 | 2336 | 6000 | 4 |
| 300 | 2634 | 7047 | 5 |
| 405 | 3375 | 12237 | 3 |
| 212 | 1899 | 6460 | 3 |
| 265 | 2312 | 6519 | 3 |
| 227.4 | 1760 | 3597 | 4 |
| 240 | 2000 | 5922 | 4 |
| 285 | 1774 | 7123 | 3 |
| 268 | 1376 | 5642 | 3 |
| 310 | 1835 | 8602 | 4 |
| 266 | 2048 | 5494 | 3 |
| 270 | 2124 | 7800 | 3 |
| 225 | 1768 | 6003 | 3 |
| 150 | 1732 | 5218 | 4 |
| 247 | 1440 | 9425 | 3 |
| 275 | 1932 | 6114 | 3 |
| 230 | 1932 | 6710 | 3 |
| 343 | 2106 | 8577 | 3 |
| 477.5 | 3529 | 8400 | 7 |
| 350 | 2051 | 9773 | 4 |
| 230 | 1573 | 4806 | 4 |
| 335 | 2829 | 15086 | 4 |
| 251 | 1630 | 5763 | 3 |
| 235 | 1840 | 6383 | 4 |
| 361 | 2066 | 9000 | 4 |
| 190 | 1702 | 3500 | 4 |
| 360 | 2750 | 10892 | 4 |
| 575 | 3880 | 15634 | 5 |
| 209.001 | 1854 | 6400 | 4 |
| 225 | 1421 | 8880 | 2 |
| 246 | 1662 | 6314 | 3 |
| 713.5 | 3331 | 28231 | 5 |
| 248 | 1656 | 7050 | 4 |
| 230 | 1171 | 5305 | 3 |
| 375 | 2293 | 6637 | 5 |
| 265 | 1764 | 7834 | 3 |
| 313 | 2768 | 1000 | 3 |
| 417.5 | 3733 | 8112 | 4 |
| 253 | 1536 | 5850 | 3 |
| 315 | 1638 | 6660 | 4 |
| 264 | 1972 | 6637 | 3 |
| 255 | 1478 | 15267 | 2 |
| 210 | 1408 | 5146 | 3 |
| 180 | 1812 | 6017 | 3 |
| 250 | 1722 | 8410 | 3 |
| 250 | 1780 | 5625 | 4 |
| 209 | 1674 | 5600 | 4 |
| 258 | 1850 | 6525 | 4 |
| 289 | 1925 | 6060 | 3 |
| 316 | 2343 | 5539 | 4 |
| 225 | 1567 | 7566 | 3 |
| 266 | 1664 | 5484 | 4 |
| 310 | 1386 | 5348 | 6 |
| 471.25 | 2617 | 15834 | 5 |
| 335 | 2321 | 8022 | 4 |
| 495 | 2638 | 11966 | 4 |
| 279.5 | 1915 | 8460 | 4 |
| 380 | 2589 | 15105 | 4 |
| 325 | 2709 | 10859 | 4 |
| 220 | 1587 | 6300 | 3 |
| 215 | 1694 | 11554 | 3 |
| 240 | 1536 | 6000 | 3 |
| 725 | 3662 | 31000 | 5 |
| 230 | 1736 | 4054 | 3 |
| 306 | 2205 | 20700 | 2 |
| 425 | 1502 | 5525 | 3 |
| 318 | 1696 | 92681 | 4 |
| 330 | 2186 | 8178 | 3 |
| 246 | 1928 | 5944 | 4 |
| 225 | 1294 | 18838 | 3 |
| 111 | 1535 | 4315 | 4 |
| 268.125 | 1980 | 5167 | 3 |
| 244 | 2090 | 7893 | 4 |
| 295 | 1837 | 6056 | 3 |
| 236 | 1715 | 5828 | 3 |
| 202.5 | 1574 | 6341 | 3 |
| 219 | 1185 | 6362 | 2 |
| 242 | 1774 | 4950 | 4 |
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Discrete Mathematics, Edition
Authors: Seymour Lipschutz, Marc Lipson
4th Edition
126425881X, 9781264258819
