5. Among important factors that affecting the price of land lot are size, number of mature trees and distance to the lake. Using data for 60 recently sold land lots are shown below: A B C F 1 SUMMARY OUTPUT Regression Statistics 4 Multiple R 5 R Square 6 Adjusted R Square 7 Standard Error 0.4924 0.2425 0.2019 40.24 8 Observations 60 9. 10 ANOVA Significance F 0.0013 11 df MS 12 Regression 29,030 90,694 119,724 9676.6 5.97 13 Residual 56 1619.5 14 Total 59 15 16 Coefficients Standard Error t Stat P-value 17 Intercept 51.39 23.52 2.19 0.0331 18 Lot size 0.700 0.559 1.25 0.2156 19 Trees 0.679 0.229 2.96 0.0045 20 Distance -0.378 0.195 -1.94 0.0577 a) Write the regression equation b) What is the standard error of estimate? Interpret its value. c) What is the coefficient of determination? Interpret its value. d) What is the adjusted coefficient of determination? Interpret its value. e) Test the validity of the model. f) Interpret each of the coefficients. g) Test at 5% level of significance, whether each of the independent variables is linearly related to the price of land lot in the model.
5. Among important factors that affecting the price of land lot are size, number of mature trees and distance to the lake. Using data for 60 recently sold land lots are shown below: A B C F 1 SUMMARY OUTPUT Regression Statistics 4 Multiple R 5 R Square 6 Adjusted R Square 7 Standard Error 0.4924 0.2425 0.2019 40.24 8 Observations 60 9. 10 ANOVA Significance F 0.0013 11 df MS 12 Regression 29,030 90,694 119,724 9676.6 5.97 13 Residual 56 1619.5 14 Total 59 15 16 Coefficients Standard Error t Stat P-value 17 Intercept 51.39 23.52 2.19 0.0331 18 Lot size 0.700 0.559 1.25 0.2156 19 Trees 0.679 0.229 2.96 0.0045 20 Distance -0.378 0.195 -1.94 0.0577 a) Write the regression equation b) What is the standard error of estimate? Interpret its value. c) What is the coefficient of determination? Interpret its value. d) What is the adjusted coefficient of determination? Interpret its value. e) Test the validity of the model. f) Interpret each of the coefficients. g) Test at 5% level of significance, whether each of the independent variables is linearly related to the price of land lot in the model.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 8E
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