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Using the excel data, run 2 different simple linear regressions using price as the Y variable in each, and sqrft and lot size as the
Using the excel data, run 2 different simple linear regressions using price as the Y variable in each, and sqrft and lot size as the X variables.
- Which regression of the 2 do you think is 'best'?
Show your work and explain.
For the regression you thought that was best, answer the following questions.
- 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 Data
A C D 1 price sqrft lotsize bdrms 2 300 2438 6126 4 3 370 2076 9903 3 4 191 1374 5200 5 195 1448 4600 6 373 2514 6095 4 466.275 2754 8566 5 8 332.5 2067 9000 3 9 315 1731 6210 10 206 1767 6000 11 240 1890 2892 12 285 2336 6000 4 13 300 2634 7047 5 14 405 3375 12237 3 15 212 1899 6460 3 16 265 2312 6519 17 227.4 1760 3597 A 18 240 2000 5922 A 19 285 1774 7123 3 20 268 1376 5642 21 310 1835 8602 4 22 266 2048 5494 3 23 270 2124 7800 24 225 1768 6003 25 150 1732 5218 4 26 247 1440 942527 275 1932 6114 28 230 1932 6710 29 343 2106 8577 3 30 477.5 3529 8400 31 350 2051 9773 4 32 230 1573 4806 A 33 335 2829 15086 4 34 251 1630 5763 3 35 235 1840 6383 4 36 361 2066 9000 4 37 190 1702 3500 4 38 360 2750 10892 4 39 575 3880 15634 5 40 209.001 1854 6400 4 41 225 1421 8880 2 42 246 1662 6314 43 713.5 3331 28231 5 44 248 1656 7050 4 45 230 1171 5305 46 375 2293 6637 5 47 265 1764 7834 48 313 2768 1000 49 417.5 3733 8112 A 50 253 1536 5850 3 51 315 1638 6660 4\f71 220 1587 6300 72 215 1694 11554 73 240 1536 6000 74 725 3662 31000 Q N W U Q W W 75 230 1736 4054 76 306 2205 20700 77 425 1502 5525 78 318 1696 92681 4 79 330 2186 8178 3 80 246 1928 5944 4 81 225 1294 18838 3 82 111 1535 4315 4 83 268.125 1980 5167 3 84 244 2090 7893 4 85 295 1837 6056 86 236 1715 5828 W W W 87 202.5 1574 6341 88 219 1185 6362 2 89 242 1774 4950 4Step by Step Solution
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