Question: Let me know the Hypothesis test explanation is correct. Is there a significant relationship between the Price Per Square Foot of a house (a) The

Let me know the Hypothesis test explanation is correct.

  1. Is there a significant relationship between the Price Per Square Foot of a house (a) The age of the house (b) the number of bedrooms (c) the size of the garage and (d) the Size of the House?

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.591a

.349

.324

7.713947

a. Predictors: (Constant), How Many Cars Can Fit in the Garrage, Number of Bedrooms, Age of House in Years, Living Space in Square Feet

Coefficients

Unstandardized Coefficients

Z

Sig.

B

Std. Error

Beta

(Constant)

53.789

6.090

8.833

.000

Living Space in Square Feet

-.015

.002

-.697

-7.170

.000

Age of House in Years

-.625

.181

-.310

-3.456

.001

Number of Bedrooms

4.120

1.215

.300

3.391

.001

How Many Cars Can Fit in the Garage

10.339

2.489

.367

4.154

.000

a. Dependent Variable: Price per Square Foot

Price = 53.789 - 0.015 (Size) - .625 (Age) + 4.120(Bed) + 10.399(Cars) +

(8.833) (-7.170) (-3.456) (3.391) (4.154)

R2 = .349 (34.9%)=> Garage34.9% of Changes in the Price of houses is explained by changes in the variables in the equation

Hypothesis Tests.

H0: = 0=> Size of Living Space does not significantly affect Price of House

H0: 0=> Size of Living Space significantly affects Price of House

Level of Significance (1%) .015=> Z* = 0.00

Decision Rule: If Z Z* == Reject the Null Hypothesis

Conclusion=> Since Z (8.833) > Z* (0.00) I reject the H0 and conclude that Size of House significantly affects its Price.

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 Economics Questions!