The following table contains results from the regression of sales price (y) on lot size (x1),...

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The following table contains results from the regression ofsales price (y) on lot size (x₁), number of bedrooms(x₂), number of bathrooms(x₃) and number ofstoreys (x₄). Sales price is the dependent variable andx₁,x₂,x₃,x₄ areindependent variables.
R² = 0.54
F= stat = 48.3235
p value and F - stat of 1.18E - 88
n > 30.
a. Write down the least square prediction equation
b.use R² to check the validity of the model.
c use \" t-stat\" to check the validity of the coefficient at 5 %sig. level
d.use P value to check the validity of the coefficient at 1% siglevel
e verbally explain each coefficient
f. check the validity of the model at 5% sig level ( use F statand its P value )

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3.7 Ratings (455 Votes)

a The least square prediction equation for y using the 4predictors can be expressed asb The coefficient of determination R2 054Itimplies that the 4 predictors together explains about 54 variationin y It suggests a moderately efficient See Answer

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