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Question
NARRBEGIN: SA_91_97The information below represents the relationship between the selling price (Y, in $1000) of a home, the square footage of the home (
), and the number of bedrooms in the home (
). The data represents 65 homes sold in a particular area of a city and was analyzed using simple linear regression for each independent variable.| Summary measures | ||||
| Multiple R | 0.8148 | |||
| R-Square | 0.6640 | |||
| StErr of Estimate | 8.5572 | |||
| Regression coefficients | ||||
| Coefficient | Std Err | t-value | p-value | |
| Constant | 52.157 | 7.4784 | 6.9744 | 0.0000 |
| Square Footage | 4.646 | 0.4164 | 11.1575 | 0.0000 |
| Summary measures | ||||
| Multiple R | 0.6487 | |||
| R-Square | 0.4208 | |||
| StErr of Estimate | 11.2344 | |||
| Regression coefficients | ||||
| Coefficient | Std Err | t-value | p-value | |
| Constant | 100.628 | 5.2324 | 19.2316 | 0.0000 |
| Number of Bedrooms | 11.035 | 1.6310 | 6.7660 | 0.0000 |
(A) Is there evidence of a linear relationship between the selling price and the square footage of the homes? If so, interpret the least squares line and characterize the relationship (i.e., positive, negative, strong, weak, etc.).
(B) Identify and interpret the coefficient of determination (
) for the model in (A).(C) Identify and interpret the standard error of estimate
for the model in (A).(D) Is there evidence of a linear relationship between the selling price and number of bedrooms of the homes? If so, interpret the least squares line and characterize the relationship (i.e., positive, negative, strong, weak, etc.).
(E) Identify and interpret the coefficient of determination (
) for the model in (D).(F) Identify and interpret the standard error of the estimate (
) for the model in (C).(G) Which of the two variables, the square footage or the number of bedrooms, is the relationship with home selling price stronger? Justify your choice.
Answer
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