Question: Write the regression (prediction) equation: Dep_Var = Intercept + c1 * Ind_Var_1 + c2 * Ind_Var_2 + c3 * Ind_Var_3 The dependent - price of

  • Write the regression (prediction) equation:
  • Dep_Var = Intercept + c1 * Ind_Var_1 + c2 * Ind_Var_2 + c3 * Ind_Var_3
  • The dependent - price of the home (HP).
  • The independent variables square footage (SF), bedroom count (BR), bathroom count (BA) and age of the home (AGE)

  1. Define "adjusted R2," what does the value of the adjusted R2reveal about the model?
  2. Using the p-value approach, is the null hypothesis for the F-test rejected or not rejected?
  3. Using the p-value approach, is the null hypothesis for the t-test rejected or not rejected for each coefficient? Identify the variable with the greatest significance.
  4. Generate the correlation matrix. Define multicollinearity. Are any of the independent variables highly correlated with each other?
House Price Size Bedrooms Baths Home Age
1 919480 7670 8 5.5 1
2 848420 7190 6 4 5
3 841491 7030 6 4 8
4 793656 6530 7 5 3
5 793084 6800 8 5.5 6
6 706596 6600 7 5 7
7 694430 5900 5 3.5 10
8 667732 5570 5 3.5 4
9 667212 6110 6 4 8
10 558342 6160 6 4 7
11 547596 4920 6 4.5 2
12 546084 5910 6 4 10
13 537900 4890 6 4 7
14 523584 5050 6 4 10
15 496100 4510 6 4.5 17
16 487494 4380 6 4 6
17 478675 4660 5 3.5 9
18 466560 5760 5 3.5 3
19 459950 4680 4 3 8
20 453913 3660 6 4 18
21 448800 5280 6 4 8
22 445740 4370 4 3 5
23 416160 4080 4 3 12
24 416120 4040 5 3.5 3
25 410592 4200 4 3 9
26 404538 3290 5 3.5 14
27 393584 4660 4 3 7
28 393557 3180 4 3 20
29 392904 3400 3 2 8

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