19: Which statement is incorrect? A. The regression model is significant. B. Abo
ID: 3259598 • Letter: 1
Question
19: Which statement is incorrect?
A. The regression model is significant.
B. About 94.96% of the variation in Assessed Value is explained by the independent (explanatory) variables.
C. .Both independent variables are statistically significant at the .01 level.
D. There are two independent (explanatory) variables.
20: At the .01 significance level, what is the impact of the dummy variable, Freeway?
A: The variable is significant, and decreases assessed value by $103.96.
B: The variable is significant, and increases assessed value by $103.96.
C: The variable is not significant.
Regression Statistics
Multiple R
0.974490448
R Square
0.949631633
Adjusted R Square
0.946157952
Standard Error
105.7336406
Observations
32
ANOVA
df
SS
MS
F
Significance F
Regression
2
6112539.395
3056270
273.3791
1.52E-19
Residual
29
324208.48
11179.6
Total
31
6436747.875
Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Intercept
64.99809271
62.23716463
1.044361
0.304946
-62.2912
192.287385
Floor space
0.318859907
0.013989479
22.79284
4.62E-20
0.290248
0.3474716
Freeway
103.9598395
39.69323713
2.619082
0.013876
22.77806
185.141623
DV = Assessed value
Floor space = square footage
Freeway: 0 = no freeway access; 1 = freeway access within two miles
Regression Statistics
Multiple R
0.974490448
R Square
0.949631633
Adjusted R Square
0.946157952
Standard Error
105.7336406
Observations
32
ANOVA
df
SS
MS
F
Significance F
Regression
2
6112539.395
3056270
273.3791
1.52E-19
Residual
29
324208.48
11179.6
Total
31
6436747.875
Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Intercept
64.99809271
62.23716463
1.044361
0.304946
-62.2912
192.287385
Floor space
0.318859907
0.013989479
22.79284
4.62E-20
0.290248
0.3474716
Freeway
103.9598395
39.69323713
2.619082
0.013876
22.77806
185.141623
DV = Assessed value
Floor space = square footage
Freeway: 0 = no freeway access; 1 = freeway access within two miles
Explanation / Answer
Solution-19:
The statement in option-C is incorrect.
Explanation:
1) Option-A: This statement is correct. The regression model is significant as the value of Significance F column in ANOVA table is 1.52E-19 which is far lesser than the 0.01 significance level
2) Option-B: Looking at the regression statistics, value of R-square is about 0.9496. Hence, about 94.96% of the variation in Assessed Value is explained by the independent (explanatory) variables.
3) Option-C: This statement is incorrect. Looking the at P-value column in ANOVA table, we see that the p-value for Freeway variable is more than 0.01. Hence, this variable is not significant at 0.01 level
4) Option-D: This statement is correct. Floor Space and Freeway are two independent variables.
Solution-20:
Looking the at P-value column in ANOVA table, we see that the p-value for Freeway variable is more than 0.01. Hence, this variable is not significant at 0.01 level
Therefore, answer is option-C
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