Multiple regressions, Applied Statistics

Assignment Help:

A sample of 43 houses that were purchased in the Southern California town Monrovia within a month was collected. We are interested in the study of the relationships between Price and a set of factors which are believed to influence it. The data is saved in file House-price.sav. The variables in the data are:

P = the price (in thousands of dollars) of the house

S = the size (in square feet) of the house

N = the quality of the neighborhood of the house (1 = best, 4 = worst) as rated by two local real estate agents

A = the age of the house in years

CA = a dummy variable equal to 1 if the house has central air conditioning, 0 otherwise

SP = a dummy variable equal to 1 if the house has a pool, 0 otherwise

Y = the size of the yard around the house

Develop a multiple regression analysis for the data and answer the following question,

A) Does model fit the data? Test at 5% significance level.

B) Are all the regression coefficients significant on 5% level? Explain your results verbally.

C) Is there any difference in price between a house with swimming pool and without? If yes, what is the difference?

D) Is multicollinearity a problem here?


Related Discussions:- Multiple regressions

Simulation - analytical approach, Analytical Approach We will illustra...

Analytical Approach We will illustrate this through an example. Example 1 A firm sells a product in a market with a few competitors. The average price charged by the

Statistical inquiry, Main stages of Statistical Inquiry The following a...

Main stages of Statistical Inquiry The following are the various stages of a statistical inquiry (1)   Planning the Inquiry: First of all we have to assess the problem und

Interaction of enviornment and gene , entropy test to measure interaction b...

entropy test to measure interaction between enviornmental factors and genes

Chi square test as a distributional goodness of fit, Chi Square Test as a D...

Chi Square Test as a Distributional Goodness of Fit In day-to-day decision making managers often come across situations wherein they are in a state of dilemma about the applica

Population census, what are the challenges affecting population census in d...

what are the challenges affecting population census in developing countries

Redundancy analysis, In reduced rank regression (RRR), the dependent var...

In reduced rank regression (RRR), the dependent variables are first submitted to a PCA and the scores of the units are then used as dependent variables in a series of

Analysis of variance (anova), Analysis of variance allows us to test whethe...

Analysis of variance allows us to test whether the differences among more than two sample means are significant or not. This technique overcomes the drawback of the method used in

Index number, "index number is an economic barometer" comment on this state...

"index number is an economic barometer" comment on this statement

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd