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SUMMARY OUTPUT Regression Statistics Multiple R 0.976861736 R Square 0.954258852

ID: 3319699 • Letter: S

Question

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.976861736

R Square

0.954258852

Adjusted R Square

0.941783993

Standard Error

23.845861

Observations

15

ANOVA

df

SS

MS

F

Significance F

Regression

3

130490.1814

43496.73

76.49456

1.1849E-07

Residual

11

6254.875953

568.6251

Total

14

136745.0573

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

1.316523292

54.13092378

-0.02432

0.981032

120.4578832

117.8248

-120.458

117.8248

Sq ft

0.197891211

0.021328742

9.278147

1.55E-06

0.150946965

0.244835

0.150947

0.244835

Lot size

5.064652506

2.218085493

2.283344

0.043281

0.182679252

9.946626

0.182679

9.946626

Baths

8.530415278

15.74230667

-0.54188

0.598707

43.17899864

26.11817

-43.179

26.11817

1. Write the equation to represent the relationship.

2. Using the coefficient of determination, the data a good fit and explain.

3. Explain the quantitative relationship of interest rates to housing starts.

4. Which independent variable is the most significant?

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.976861736

R Square

0.954258852

Adjusted R Square

0.941783993

Standard Error

23.845861

Observations

15

ANOVA

df

SS

MS

F

Significance F

Regression

3

130490.1814

43496.73

76.49456

1.1849E-07

Residual

11

6254.875953

568.6251

Total

14

136745.0573

Explanation / Answer

1) Y' = 1.31652392+0.197891211*Sq ft+ 5.064652506*Lot size + 8.530415278* Baths

2) It is a good fit model. The coefficient of determination explains the percentage of estimated variance.

R-squared value= 0.954258852= 95.42%

3)Y'(interest rates) = 1.31652392+0.197891211*Sq ft+ 5.064652506*Lot size + 8.530415278* Baths

The relationship between sqft and Interest rates are significant. Increase of one squre foot, increases interest rates by 0.19789 unit.

The relationship between Lot size and Interest rates are significant at 0.05 significant level. An increase of Lot size by one unit increases the interest rate by 5.064 units.

The relationship between Baths and Interest rates are not significant at 0.05 significant level. An increase of Baths by one unit increases the interest rate by 8.53 units.

4) Independent variable which are significant to regression.

Sqft is most significant variable with p-value: 1.55*E^-6