(a)Fit a simple linear regression model relating selling price of the house to t
ID: 3300809 • Letter: #
Question
(a)Fit a simple linear regression model relating selling price of the house to the current taxes ( x1 ).Report your point estimates for all parameters of your model. Make a plot of the data and the fitted regression line.
(b) Test for significance of regression.which asks you to run and interpret an F test.
(c) What percent of the total variability in selling price is explained by this model? which ask you asks you to interpret the sums-of-squares decomposition.
y x1 x2 x3 x4 x5 x6 x7 x8 x9 29.5 5.0208 1 3.531 1.5 2 7 4 62 0 27.9 4.5429 1 2.275 1.175 1 6 3 40 0 25.9 4.5573 1 4.05 1.232 1 6 3 54 0 29.9 5.0597 1 4.455 1.121 1 6 3 42 0 29.9 3.891 1 4.455 0.988 1 6 3 56 0 30.9 5.898 1 5.85 1.24 1 7 3 51 1 28.9 5.6039 1 9.52 1.501 0 6 3 32 0 35.9 5.8282 1 6.435 1.225 2 6 3 32 0 31.5 5.3003 1 4.9883 1.552 1 6 3 30 0 31 6.2712 1 5.52 0.975 1 5 2 30 0 30.9 5.9592 1 6.666 1.121 2 6 3 32 0 30 5.05 1 5 1.02 0 5 2 46 1 36.9 8.2464 1.5 5.15 1.664 2 8 4 50 0 41.9 6.6969 1.5 6.902 1.488 1.5 7 3 22 1 40.5 7.7841 1.5 7.102 1.376 1 6 3 17 0 43.9 9.0384 1 7.8 1.5 1.5 7 3 23 0 37.5 5.9894 1 5.52 1.256 2 6 3 40 1 37.9 7.5422 1.5 5 1.69 1 6 3 22 0 44.5 8.7951 1.5 9.89 1.82 2 8 4 50 1 37.9 6.0831 1.5 6.7265 1.652 1 6 3 44 0 38.9 8.3607 1.5 9.15 1.777 2 8 4 48 1 36.9 8.14 1 8 1.504 2 7 3 3 0 45.8 9.1416 1.5 7.3262 1.831 1.5 8 4 31 0 25.9 4.9176 1 3.472 0.998 1 7 4 42 0Explanation / Answer
SolutionA:
y=13.32+3.32x1
price=13.32+3.32(current taxes)
slope=3.32
y intercept=13.32
Intrepretation of y intercept
when x1=0
price=13.32
selling price is 13.32 when there are no taxes
intrepretaion of slope
slope=3.32
change in y/change in x=3.32
For unit increase in current tax, price increases by 3.32
Solutionb:
From Anova table
F=72.5563
p<0.05
Model is signiifcant
Soutionc:
we got R sq=0.767334
coefficient of determination =0.767334*100=76.73%
76.73% variation in selling price is explained by model.
Good model
Regression Statistics Multiple R 0.875976 R Square 0.767334 Adjusted R Square 0.756759 Standard Error 2.961039 Observations 24Related Questions
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