Question:

Typically, five-bedroom houses sell for much more thantwo-bedroom houses. Is this consistent with theregression?

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Question:

A homeowner purchases 2120 square feet from an adjacent lot.Construct a confidence

interval of 99% for the change in the value of her house. The99% confidence interval for the effect of lot size on price is:

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Question:

Lot size is measured in square feet. Do you think that anotherscale might be more appropriate?

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Question:

The degrees of freedom in the numerator forthe F-test of whether the coefficientson BDR and Age arestatistically different from zero at the 10% level is:

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Question:

The F-statistic foromitting BDR and Age from theregression is F = 0.08. Are the

coefficientson BDR and Age statisticallydifferent from zero at the 10% level?

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Transcribed Image Text:

Data were collected from a random sample of 360 home sales from a community in 2003. Let Price denote the selling price (in $1,000), BDR denote the number of bedrooms, Bath denote the number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square feet), Age denote the age of the house (in years), and Poor denote a binary variable that is equal to 1 if the condition of the house is reported as "poor". An estimated regression yields: Price 126.4+0.514BDR+24.8Bath + 0.165Hsize +0.004Lsize +0.0954ge-51.7Poor; with R=0.76 (0.012) (0.00051) (0.330) (11.1) (25.3) (2.69) (9.48) Data were collected from a random sample of 360 home sales from a community in 2003. Let Price denote the selling price (in $1,000), BDR denote the number of bedrooms, Bath denote the number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square feet), Age denote the age of the house (in years), and Poor denote a binary variable that is equal to 1 if the condition of the house is reported as "poor". An estimated regression yields: Price 126.4+0.514BDR+24.8Bath + 0.165Hsize +0.004Lsize +0.0954ge-51.7Poor; with R=0.76 (0.012) (0.00051) (0.330) (11.1) (25.3) (2.69) (9.48)