Refer to the House Selling Price OR data file on the text CD.
a. Set up an indicator variable for whether a house has a garage or not. Using software, put this as the sole predictor of house selling price (in thousands) in a regression model. Report the prediction equation, and interpret the intercept and slope estimates.
b. For the model fitted in part a, conduct the t test for the effect of the indicator variable in the regression analysis (that is, test H0: β = 0 ). Interpret.
c. Use software to conduct the F test for the analysis of variance comparing the mean selling prices of homes with and without a garage. Interpret.
d. Explain the connection between the value of t in part b and the value of F in part c.