Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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. d) Why did I have you do the above three tests?

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Trigonometry

Authors: Ron Larson

9th Edition

128560718X, 9781285607184

More Books

Students also viewed these Mathematics questions