Ad Suppose this model turns out to be our best model when working with apartment

Question

Ad Suppose this model turns out to be our best model when working with apartments: Least Squares Linear Regression of Price Variables Coefficient Std Error T P VIF Constant 1123.55 1404.09 0.80 0.4277 0.0 Size X1sq 7.678E-04 1.082E-03 1.71 0.0416 68.8 Location 232236 101.717 -2.28 0.0271 1.1 In determining this was the best model, was it necessary to test the size variable using a t-test? 0.51803 2.45842 0.21 0.8348 68.6 Yes. The size variable should have been tested using an upper-tailed test 7 8 9 ER

Explanation / Answer

Since VIF for size variable = 68.6 > 10

and using a two tailed t test, we get p-value = 0.8348 < 0.05,

So at 5% level of significance, we can conclude that Size variable is not an significant predictor.

ans-> Yes, The size variable should have been tested using a two-tailed test.

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