Question: Regression Statistics Multiple R 0.78 R Square 0.61 Adjusted R Square 0.58 Standard Error 146.27 Observations 98 ANOVA df SS MS F Significance F Regression

Regression Statistics
Multiple R 0.78
R Square 0.61
Adjusted R Square 0.58
Standard Error 146.27
Observations 98
ANOVA
df SS MS F Significance F
Regression 6 2983351.2 497225.19 23.24137 1.81E-16
Residual 91 1946851 21393.967
Total 97 4930202.1
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -69.27 80.53 -0.86 0.39 -229.24 90.69 -229.24 90.69
bath 46.77 24.03 1.95 0.05 -0.96 94.51 -0.96 94.51
area 0.11 0.02 4.49 0.00 0.06 0.15 0.06 0.15
lot 330.75 74.50 4.44 0.00 182.76 478.74 182.76 478.74
Central_cooling 88.35 30.43 2.90 0.00 27.92 148.79 27.92 148.79
bed -12.40 26.13 -0.47 0.64 -64.30 39.50 -64.30 39.50
Heat_pump 39.52 39.90 0.99 0.32 -39.73 118.78 -39.73 118.78

  1. Using just one number from each of your outputs, compare the regression from problem 1 to this new regression. Which do you think explains home prices better and why, and which number did you use for this comparison?
  2. According to the coefficients from this new regression, what is the equation you would use to predict the price of a home?
  3. If you find two houses that differ only in that one of them has an additional floor (that amounts to 1200 extra square feet in size), with one more bedroom and two more bathrooms as well, what is the expected difference in price (in dollars) between these two houses according to this regression?
  4. Which of the coefficients in this regression are significant at the 5% level, and which are weakly significant (i.e., significant at the 10% level but not the 5% level)?

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