Loan ($) Payments ($) Payments Made Auction ($) 85608 1030.81 1 75525 114826 985
ID: 3292938 • Letter: L
Question
Loan ($) Payments ($) Payments Made Auction ($) 85608 1030.81 1 75525 114826 985.52 35 36175 110930 744.28 12 46250 117035 863.12 10 16600 97600 874.16 22 40700 104400 983.27 24 63100 113800 1075.54 18 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 Ma public auction. Your boss has asked you to use the following data (mortgage balance, monthly payments, payrnents made berore default, and final auction price) on a random sample of recent sales in order to estimate what the actual auction price wll be. Add a new variable that describes the potential interaction between the loan amount and the number or payments made 2 Payments Determine the regression equation. (Round your answers to 3 decimal places. Negative amounts should be indicated by a minus sign.) tion Price = Monthly Payment + Payments Made + x1x3Explanation / Answer
we find the resultas in excel or r.
the results that we find are
a.
the linear model is
auction= 5.940e+04 -4.512e-01*loan +4.104e+01 *monthly payments -3.699e+03 *payment meathod+
3.532e-02 * (interaction)
b.
Estimate Std. Error t value Pvalue
(Intercept) 5.940e+04 7.718e+04 0.770 0.453
loan -4.512e-01 6.223e-01 -0.725 0.480
payments 4.104e+01 3.547e+01 1.157 0.265
Payments_made -3.699e+03 2.369e+03 -1.562 0.139
loan:Payments_made 3.532e-02 2.231e-02 1.583 0.134
t value corrsponding to the interaction term : 1.583
the p value is 0.134, so, we conclude that there is no interaction.
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