At the beginning of the semester, you each collected a random sample of 30 house

Question

At the beginning of the semester, you each collected a random sample of 30 houses in Wake County, North Carolina. I have combined each of your samples and ran a couple of regressions from the data. The regression output and a summary of the variables that you collected are presented in Appendix 1. Use this information to answer the following questions concerning family homes in Wake County, North Carolina. Use a 5% significance level for each of the tests. Unless stated, use the full regression model to answer the questions. .Use the information given to determine if there appears to be a problem with imperfect multicollinearity in this dataset.

Explanation / Answer

Test multicollinearity:

VIF = 1/(1-r^2) =1/(1-0.232) =1.302083

Since the value of VIF is less than 5, there is no
multicollinearity problem

Since the p-value of F test for regression line is less than 0.05, the regression line is significant.

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