Question
using the following data set in R : a) Treating CBD as a 0/1 numeric variable, fit a simple linear regression that tries to predict
using the following data set in R : a) Treating CBD as a 0/1 numeric variable, fit a simple linear regression that tries to predict assessed price using CBD. Is being in the CBD a significant predictor of assessed price? Give your decision where you either reject or do not reject the null, as well as the p-value on which that decision was based. b) Now treat CBD as a 2-level factor by using as.factor() in the lm() call in order to fit an ANOVA model (with 2 groups) that tries to explain variation in assessed prices using CBD group. Does CBD group explain a significant amount of the variation in assessed price? Give your decision where you either reject or do not reject the null, as well as the p-value on which that decision was based. c) Perform a Student's t-test, where your two groups are "in the CBD" and "outside of the CBD". The null is that the two groups have the same average assessed price. Give your decision where you either reject or do not reject the null, as well as the p-value on which that decision was based.
assessed | area | CBD | security |
788000 | 76400 | 0 | Private guards |
738000 | 74300 | 0 | None |
646000 | 69600 | 0 | Private guards |
762000 | 73600 | 0 | Fencing |
872000 | 76800 | 0 | None |
706000 | 72700 | 1 | None |
860000 | 79200 | 0 | Private guards |
831000 | 75600 | 0 | Fencing |
945000 | 78100 | 0 | Private guards |
712000 | 76900 | 1 | Private guards |
643000 | 68500 | 0 | None |
731000 | 73200 | 0 | None |
968000 | 77500 | 0 | Private guards |
824000 | 76200 | 0 | Fencing |
816000 | 75100 | 0 | None |
768000 | 77000 | 1 | Fencing |
772000 | 73000 | 0 | Fencing |
737000 | 73000 | 1 | Fencing |
886000 | 77200 | 0 | Fencing |
747000 | 73400 | 0 | None |
912000 | 78800 | 0 | None |
866000 | 77300 | 0 | Fencing |
827000 | 76500 | 0 | Private guards |
878000 | 76800 | 0 | Fencing |
850000 | 79400 | 1 | None |
691000 | 71500 | 0 | None |
696000 | 70000 | 1 | Private guards |
712000 | 71900 | 0 | None |
629000 | 74700 | 1 | Private guards |
841000 | 76100 | 0 | Private guards |
670000 | 72600 | 1 | Private guards |
832000 | 77600 | 1 | Fencing |
639000 | 70700 | 1 | Fencing |
853000 | 76300 | 0 | None |
924000 | 77200 | 0 | Private guards |
903000 | 77900 | 0 | None |
747000 | 72900 | 0 | Fencing |
733000 | 73600 | 1 | None |
831000 | 75000 | 0 | Fencing |
691000 | 72500 | 0 | None |
750000 | 74100 | 1 | None |
674000 | 70300 | 1 | Private guards |
684000 | 70600 | 0 | Fencing |
793000 | 76900 | 1 | Private guards |
864000 | 75800 | 0 | Fencing |
758000 | 71900 | 0 | Private guards |
888000 | 78800 | 0 | Fencing |
727000 | 73500 | 1 | Private guards |
889000 | 78400 | 0 | Fencing |
827000 | 75800 | 0 | Private guards |
866000 | 74600 | 0 | None |
828000 | 76500 | 0 | Fencing |
879000 | 77300 | 0 | Private guards |
755000 | 74400 | 0 | None |
810000 | 71300 | 0 | None |
882000 | 74500 | 0 | None |
639000 | 69500 | 0 | Private guards |
782000 | 75900 | 0 | Fencing |
633000 | 68200 | 0 | None |
902000 | 78500 | 0 | Fencing |
743000 | 73200 | 0 | Fencing |
976000 | 79400 | 0 | Fencing |
844000 | 74700 | 0 | Fencing |
705000 | 71500 | 1 | None |
d) Why did I have you do the above three tests?
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