A Realtor examines the factors that influence the price of a house in Arlington,

Question

A Realtor examines the factors that influence the price of a house in Arlington, Massachusetts. He collects data on recent house sales (Price) and notes each house's square footage (Sqft) as well as its number of bedrooms (Beds) and number of bathrooms (Baths). A portion of the data is shown in the accompanying table. Use Table 2 and Table 4. Price Saft Beds Baths Price Saft Beds Baths 840,000 2,768 3.5 495,000 1,692 2.0 463,000 1,714 3 2.0 457,000 1,650 3 2.0 822,000 2,500 4 713,000 2,400 2.5 3.0 689,000 2,200 2.5 685,000 2,716 3.5 451,000 1,685 2.0 435,000 1,500 3 1.5 645,000 2,524 2.0 4 2.5 431,700 1,896 1.5 414,000 1,182 2 1.5 625,000 2,436 4 587,500 2,100 3.5 401,500 1,152 3 1.0 399,000 1,383 1.0 380,000 4 2.0 380,000 1,272 1.0 1.5 585,000 1,947 1.5 583,000 2,224 2.5 569,000 3,262 4 2.0 375,900 2,275 1.0 372,000 1,005 2 1.0 367,500 1,272 1.0 546,000 1,792 2.0 540,000 1,488 3 1.5 537,000 3 2.5 516,000 1,951 2.0 511,000 1,752 3 1.5 510,000 1,727 3 2.0 356,500 1,431 2 2.0 330,000 1,362 1.0 330,000 1,465 1.0 307,500 850 1.0 Click here for the Excel Data File a. Estimate: Price Bo B1 Saft B2 Beds B3 Baths E. (Round your answers to 2 decimal places sqft+ Beds Baths Price b-1. Choose the appropriate hypotheses to test whether the explanatory variables are jointly significant in explaining price O Ho: B1 B2 B3 0; HA: At least one Bi 0 O Ho: B1 A32 B3 0; HA: At least one Bi 0 O Ho: B1 B2 B3 0; HA: At least one Bi

Explanation / Answer

a)

Price=153348.266394598+95.8559425528214Sqft+556.890665609759Beds+92022.9125947819Baths

b-1)

H0: 1 = 2 = … = k = 0

H1: at least one i 0

b-2)

FSTAT=27.9347708583244

b-3)

FSTAT>FCRIT and hence reject the null hypothesis. Reject H0; the explanatory variables are not jointly significant in explaining price

c-1)

H0:Bj=0; Ha:Bj#0

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