A realtor is trying to predict the selling price of houses in Greenville (in tho

Question

A realtor is trying to predict the selling price of houses in Greenville (in thousands of dollars) as a function of Size (measured in thousands of square feet) and whether or not there is a fireplace (FP is 0 if there is no fireplace, 1 if there is a fireplace). Part of the regression output is provided below, based on a sample of 20 homes. Some of the information has been omitted. Fill in the blanks with question marks. In a regression with 30 observations and 3 predictors, there will be _____ residuals. What is the maximum suggested number of predictors for a regression with 200 observations? The F-test for ANOVA in a regression model with 4 predictors and 50 observations would have how many degrees of freedom? (T/F) There is one residual for each predictor in the regression model. (T/F) If R^2 and R^2_adj differ greatly, we should probably remove a few predictors to improve the fit.

Explanation / Answer

The first table is

The second table is

2. if there are three predictors and 30 obsrvations, then number of residuals = 30 residuals. Doesn't depends on predcitors

3. There is 10 times rule which tails that it would be 1/10th times the observations so the answer would be 200/10 = 20.

4. Total number of degree of freedom = n -1 = 49

where dF regression = 4

and dF (residual) = n-k+1 = 46

5. False, there is one residual for each observation not predictor.

6. True, R2adj. is belonged to number of predictors so removing a few predictors to improve the fit, the difference can be reduced.

Variable Coefficients Std. error t- stat Intercept 100 2 50 Size 10 1 10 FP 6 1.2 5

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