The Information Below Represents the Relationship Between the Selling Price

question 59

Essay

The information below represents the relationship between the selling price (Y, in $1,000) of a home, the square footage of the home ( ), and the number of rooms in the home ( ). The data represents 60 homes sold in a particular area of East Lansing, Michigan and was analyzed using multiple linear regression and simple regression for each independent variable. The first two tables relate to the multiple regression analysis.
-(A) Use the information related to the multiple regression model to determine whether each of the regression coefficients are statistically different from 0 at a 5% significance level. Summarize your findings.
(B) Test at the 5% significance level the relationship between Y and X in each of the simple linear regression models. How does this compare to your answer in (A)? Explain.
(C) Is there evidence of multicollinearity in this situation? Explain why or why not.

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Definitions:

Predominate

To be the strongest or main element; to have a commanding or dominant position.

2-Methylbutane

An organic compound, also known as isopentane, characterized by a branched chain of carbon atoms, used as a refrigerant and in organic synthesis.

2-Methylbut-1-ene

An alkene with the formula C5H10, featuring a double bond at the first position and a methyl group at the second position.

Elimination Products

Substances formed from the removal of atoms or groups in a molecule, often resulting in the formation of double or triple bonds.