Table 3.12 gives the selling price (Price, expressed in thousands of dollars), the square footage (SqrFt), the
Question:
Price = β0 + β1 SqrFt + β2 Bathrms + β3 Niceness + β4 Pool? + ε
a. Noting that β4 is the effect on mean sales price of a home having a pool, find (on the output) a point estimate of this effect. If the average current purchase price of the pools in the sample is
FIGURE 14.19
MINITAB Output of a Regression Analysis of the Florida Pool Home Data Using the Model Price = β0 + β1 SqrFt + β2 Bathrms + β3 Niceness + β4 Pool? + ε
$32,500. Find a point estimate of the percentage of a pool's cost that a customer buying a pool can expect to recoup when selling his (or her) home.
b. If we add various combinations of the interaction terms SqrFt Pool?, Bathrooms Pool?, and Niceness Pool? to the above model, we find that the p-values related to these terms are greater than .05. What does this imply?
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Related Book For
Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell
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