Question: Dependent variable - price independent - size, bedroom, age Identify and interpret the adjusted R 2 (one paragraph ). Define adjusted R 2 , what

Dependent variable - price

independent - size, bedroom, age

  1. Identify and interpret the adjusted R2 (one paragraph). Define "adjusted R2," what does the value of the adjusted R2 reveal about the model? If the adjusted R2 is low, how has the choice of independent variables created this result?
  2. Identify and interpret the F-test (one paragraph). Using the p-value approach, is the null hypothesis for the F-test rejected or not rejected? Why or why not? Interpret the implications of these findings for the model.
  3. Identify and interpret the t-tests for each of the coefficients (one separate paragraph for each variable, in numerical order): Are the signs of the coefficients as expected? If not, why not? For each of the coefficients, interpret the numerical value. Using the p-value approach, is the null hypothesis for the t-test rejected or not rejected for each coefficient? Why or why not? Interpret the implications of these findings for the variable. Identify the variable with the greatest significance.
  4. Analyze multicollinearity of the independent variables (one paragraph);Generate the correlation matrix. Define multicollinearity. Are any of the independent variables highly correlated with each other? If so, identify the variables and explain why they are correlated. State the implications of multicollinearity (if found) for the model you have created for this analysis.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!