THE EXCEL FILE IS Loan ($) Payments ($) Payments Made Auction ($) 85613 1003.1 1
ID: 3291728 • Letter: T
Question
THE EXCEL FILE IS
Loan ($) Payments ($) Payments Made Auction ($) 85613 1003.1 1 28525 113255 929.31 36 40575 110315 749.28 7 45250 91935 726.17 8 16600 97600 831.85 21 40700 104400 983.27 18 63100 113800 1075.54 20 72600 116400 1087.16 35 72300 100000 900.01 33 58100 92800 683.11 36 37100 105200 915.24 34 52600 105900 905.67 38 51900 94700 810.7 25 43200 105600 891.33 20 52600 104100 864.38 7 42700 85700 1074.73 30 22200 113600 871.61 24 77000 119400 1021.23 58 69000 90600 836.46 3 35600 104500 1056.37 22 63000 You are a new hire at Laurel Woods Real Estate, which specializes in selling foreclosed homes ia public auction. Your boss has asked you to use the following data (mortgage balance, monthly payments, payments made before default, and final auction price) on a random sample of recent sales in order to estirnate what the actual auction price will be. Add a new variable that describes the potential interaction between the loan amount and the number or payments made Payments tion Price $1,003.10 Deternine the regression equation. (Round your answers to 3 decimal places. Negative amounts should be indicated by a minus sign.) uction Price oan + Monthly Payment + Payments Made + x1x3Explanation / Answer
y = -142843.1425 + 1.56-+72*loan +36.4462 * payments + 1353.6108 *paymrnts -0.01286 * Loan*Paymrnt
t-value =
since p-value = 0.3663 > 0.05
hence we fail to reject
SUMMARY OUTPUT Regression Statistics Multiple R 0.850668488 R Square 0.723636876 Adjusted R Square 0.649940044 Standard Error 10094.19779 Observations 20 ANOVA df SS MS F Significance F Regression 4 4001985190 1000496298 9.819104126 0.000416033 Residual 15 1528392435 101892829 Total 19 5530377625 Coefficients Standard Error t Stat P-value Lower 95% Intercept -142843.1425 46373.22989 -3.080293154 0.007617707 -241685.3423 loan ($) 1.54671911 0.416691676 3.711903062 0.002087574 0.658561825 Payments ($) 36.44641959 21.15250351 1.723031015 0.105428475 -8.639074397 Payments Made 1353.610815 1447.673802 0.935024736 0.364585176 -1732.032852 Loan*Payment -0.012868154 0.01381206 -0.931660743 0.366265642 -0.042307864Related Questions
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