# The county assessor feels that the use of more independent variables in the regression equation might improve

## Question:

a. Using a computer regression program, determine the estimated regression equation with the four explanatory variables shown in the following table.

b. Give an economic interpretation of each of the estimated regression coefficients.

c. Which of the independent variables (if any) is statistically significant (at the .05 level) in explaining selling price?

d. What proportion of the total variation in selling price is explained by the regression model?

e. Perform an F-test (at the 5 percent significance level) of the overall explanatory power of the model.

f. Construct an approximate 95 percent prediction interval for the selling price of a 15-year-old house having 1,800 square feet, 7 rooms, and an attachedgarage.

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**Related Book For**

## Managerial economics applications strategy and tactics

**ISBN:** 978-1439079232

12th Edition

**Authors:** James r. mcguigan, R. Charles Moyer, frederick h. deb harris