Reference no: EM132514962
In an earlier slide, we ran a multiple linear regression model foreal estate prices based on several predictors. Our fitted model was:
Price = 320394.1 + 93.1 (Living Area) - 68307 (Bedrooms) + 87743 (Bathrooms) - 14.5 (Year) - 10573.7 (Garages)
Let us consider the counterintuitive negative slope for Bedrooms, which was with a p-value of 0.000000287. Which is the best interpretation for this coefficient and p-value, assuming that the model is valid?
-Holding the number of garages, living area, bathrooms, and year of construction fixed, increasing the number of bedrooms is associated with a lower mean price, and the association is significant.
-The predictor is not significant.
-Holding the number of garages, living area, bathrooms, and year of construction fixed, increasing the number of bedrooms is associated with a lower mean price, but the association is not significant.
-Increasing the number of bedrooms is associated with a lower mean price at a 0.05 significance level.