Question: Using the below Excel dataset, run two different simple linear regressions using price as the Y variable in each and sqrft and lotsize as the

Using the below Excel dataset, run two different simple linear regressions using price as the Y variable in each and sqrft and lotsize as the X variables.

Q1) Which regression of the two do you think is "best"?

Show your work and explain.

For the regression you felt was best, answer the following questions.

Q2) Provide the "SUMMARY OUTPUT" generated by the Excel regression command and explain what each number is in this output and how they are related to one another.

  1. Is the intercept statistically significantly different from zero at the 5% level? Explain.
  2. Is the slope statistically significantly different from zero at the 1% level? Explain.
  3. Is the slope statistically significantly different from 0.5 at the 10% level? Explain.
  4. Is the intercept statistically significantly smaller than 90 at the 1% level? Explain.
  5. What is the 90% confidence interval for the slope?
  6. What is the predicted price given the average level of your X variable?

Excel Dataset

price sqrft lotsize bdrms
300 2438 6126 4
370 2076 9903 3
191 1374 5200 3
195 1448 4600 3
373 2514 6095 4
466.275 2754 8566 5
332.5 2067 9000 3
315 1731 6210 3
206 1767 6000 3
240 1890 2892 3
285 2336 6000 4
300 2634 7047 5
405 3375 12237 3
212 1899 6460 3
265 2312 6519 3
227.4 1760 3597 4
240 2000 5922 4
285 1774 7123 3
268 1376 5642 3
310 1835 8602 4
266 2048 5494 3
270 2124 7800 3
225 1768 6003 3
150 1732 5218 4
247 1440 9425 3
275 1932 6114 3
230 1932 6710 3
343 2106 8577 3
477.5 3529 8400 7
350 2051 9773 4
230 1573 4806 4
335 2829 15086 4
251 1630 5763 3
235 1840 6383 4
361 2066 9000 4
190 1702 3500 4
360 2750 10892 4
575 3880 15634 5
209.001 1854 6400 4
225 1421 8880 2
246 1662 6314 3
713.5 3331 28231 5
248 1656 7050 4
230 1171 5305 3
375 2293 6637 5
265 1764 7834 3
313 2768 1000 3
417.5 3733 8112 4
253 1536 5850 3
315 1638 6660 4
264 1972 6637 3
255 1478 15267 2
210 1408 5146 3
180 1812 6017 3
250 1722 8410 3
250 1780 5625 4
209 1674 5600 4
258 1850 6525 4
289 1925 6060 3
316 2343 5539 4
225 1567 7566 3
266 1664 5484 4
310 1386 5348 6
471.25 2617 15834 5
335 2321 8022 4
495 2638 11966 4
279.5 1915 8460 4
380 2589 15105 4
325 2709 10859 4
220 1587 6300 3
215 1694 11554 3
240 1536 6000 3
725 3662 31000 5
230 1736 4054 3
306 2205 20700 2
425 1502 5525 3
318 1696 92681 4
330 2186 8178 3
246 1928 5944 4
225 1294 18838 3
111 1535 4315 4
268.125 1980 5167 3
244 2090 7893 4
295 1837 6056 3
236 1715 5828 3
202.5 1574 6341 3
219 1185 6362 2
242 1774 4950 4

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