You are a new hire at Laurel Woods Real Estate, which specializes in selling foreclosed homes via public auction. Your boss has asked you to use the following data (mortgage balance, monthly payments, payments made before default, and final auction price) on a random sample of recent sales in order to estimate what the actual auction price will be.

a. Carry out a global test of hypothesis to verify if any of the regression coefficients are different from zero.
b. Do an individual test of the independent variables. Would you remove any of the variables?
c. If it seems one or more of the independent variables is not needed, remove it and work out the revised regressionequation.

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Monthly Payments Auction Made Loan Payments S 85,600 985.87 902.56 736.28 Price S16,900 75,800 43,900 115,300 103,100 119,400 1,021.23 836.46 69,000 35,600 63,000 90,600 104,500 1,056.37