Find the standard deviation of the regression model

Reference no: EM131111181

The owner of an apartment building in Minneapolis believed that her property tax bill was too high because of an over assessment of the property's value by the city tax assessor. The owner hired an independent real estate appraiser to investigate the appropriateness of the city's assessment. The appraiser used regression analysis to explore the relationship between the sale prices of apartment buildings sold in Minneapolis and various characteristics of the properties. Twenty-five apartment buildings were randomly sampled from all apartment buildings that were sold during a recent year. The table on page 580 lists the data collected by the appraiser. The real estate appraiser hypothesized that the sale price (that is, market value) of an apartment building is related to the other variables in the table according to the model

a. Fit the real estate appraiser's model to the data in the table. Report the least squares prediction equation.

b. Find the standard deviation of the regression model and interpret its value in the context of this problem.

c. Do the data provide sufficient evidence to conclude that value increases with the number of units in an apartment building? Report the observed significance level and reach a conclusion using α = .05.

d. Interpret the value of in terms of these data. Remember that your interpretation must recognize the presence of the other variables in the model.

e. Construct a scattergram of sale price versus age. What does your scattergram suggest about the relationship between these variables?

f. Test H₀: ß₂ = 0 against H_a: ß₂

g. What is the observed significance level of the hypothesis test of part f?

Reference no: EM131111181

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