Question: A real estate analyst estimates the following regression, relating a house price to its square footage (Sqft): In an attempt to improve the results, he

A real estate analyst estimates the following regression, relating a house price to its square footage (Sqft):

In an attempt to improve the results, he adds two more explanatory variables: the number of bedrooms (Beds) and the number of bathrooms (Baths). The estimated regression equation is

SSE = 48,074; n = 50
a. Formulate the hypotheses to determine whether Beds and Baths are jointly significant in explaining Price.
b. Calculate the value of the test statistic.
c. At the 5% significance level, find the critical value(s).
d. What is the conclusion to the test?

Price = 48.39 + 52.74Sqft; SSE= 56,944; n= 50 Price 28.11+ 40.17Sqft + 10.08Beds 16.14Baths

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