Regression model, Applied Statistics

Assignment Help:

A real estate agency collected the data shown below, where

          y  = sales price of a house (in thousands of dollars)

          x1 = home size (in hundreds of square feet)

          x2 = rating (an overall rating for the house expressed on a scale from   1 (worst) to 10 (best).

 

                             Sales Price (y)    Home Size (x1)        Rating (x2)    

                                    180.0                     23                           5

                                      98.1                      11                           2

                                    173.1                     20                           9

                                    136.5                     17                           3

                                    141.0                     15                           8

                                    165.9                     21                           4

                                    193.5                     24                           7

                                    127.8                     13                           6

                                    163.5                     19                           7

                                    172.5                     25                           2              

 

     The agency developed the following regression model:

                 y = βo + β1 x1 + β2 x2+ €

     a) Show why this may be a reasonable model for the relationship between the sales price and home size? 

     b) What factors are represented in the error term in this model?  Give a specific example of these factors.


Related Discussions:- Regression model

Level of significance, Level of Significance: α The main purpose of hyp...

Level of Significance: α The main purpose of hypothesis testing is not to question the computed value of the sample statistic, but to make judgment about the difference between

Effect in frequency domain, A) The three images shown below were blurred us...

A) The three images shown below were blurred using square masks of sizes n=23, 25, and 45, respectively. The vertical bars on the le_ lower part of (a) and (c) are blurred, but a c

Calculate the damping ratio for each system, (i) Plot the step responses of...

(i) Plot the step responses of the following second order systems and state the nature of each system. For each case, find the poles and plot the location of the poles in the compl

Determine the maximum process variability, You are going to purchase a part...

You are going to purchase a part from a specialty vendor.  Your company needs a C p of at least 1.67 on a critical dimension of the part.  The dimensional specification for this p

Managerial report, A. Compute descriptive statistics for each stock and the...

A. Compute descriptive statistics for each stock and the S&P 500. Comment on your results. Which stocks are most volatile?

Compute the output of correlation, Q. Compute the output of correlation? ...

Q. Compute the output of correlation? The following figure shows (a) a 3-bit image of size 5-by-5 image in the square, with x and y coordinates specified, (b) a Laplacian

Simple linear regression, We are interested in assessing the effects of tem...

We are interested in assessing the effects of temperature (low, medium, and high) and technical configuration on the amount of waste output for a manufacturing plant. Suppose that

Bimodal distribution, There may be two values which occur with the same max...

There may be two values which occur with the same maximum frequency. The distribution is then called bimodal. In a bimodal distribution, the value of mode cannot be determined with

Uses of arthematic mean, give me question on mean is the aimplest average t...

give me question on mean is the aimplest average to understand and easy to compute

Sensitivity and Specificity tests, The prevalence of undetected diabetes in...

The prevalence of undetected diabetes in a population to be screened is approximately 1.5% and it is assumed that 10,000 persons will be screened. The screening test will measure

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