Refer to the accompanying table, which was obtained using data from homes sold.

Question

Refer to the accompanying table, which was obtained using data from homes sold. The response (y) variable is selling price (in dollars). The predictor (x) variables are LP (ist price in dollars), LA (living area of the home in square feet), and LOT (lot size in acres). If only one predictor () variable is used to predict the selling price, which single variable is best? Why? Cick the icon to view the various regression equations. Select the best choice. O A. The best single preictor variable is LA because the associated regression equation has the lowest P-value of 0.000 and the lowest adjusted R of 0.599 ofthe equations with a P-value of 0.000. B. The best single predictor variable is LP because the associated regression equation has the lowest P-value of 0.000 and the highest adjusted R2 of 0.987 The best single predictor variable is LOT because the associated regression equation has the highest P-value of 0.028 and the lowest adjusted R2 of 0.225 C. O D. None of the single predictor variables can be used to predict the seling price. Regression Equations Predictor (x) Variables p- Value R2 Adjusted Regression Equation R2 LP, LA, LOT 0000 0.988 0.987 y 8,237 0.984 LP-5.4 LA-87 LOT 0.987 0987 0.801 0.987 0.599 0.225 y 8,527 0.981 LP -5.1 LA LP, LA LP, LOT LA, LOT LP LA 0.000 0.988 0.000 98 0987y-104 y = 10412 + 0943 LP + 504 LOT y-119,647+ 95.7 LA+ 14,522 LOT y=8,825 + 0.950 LP y = 141 ,725+ 98.8 LA 0000 0809 080119647-95.7LA-14 522 LOT 0.000 0.987 0.987 y 8, 0.000 0607 0599 y 0.028 0.241 0.987 LOT 241 317,343 + 15,837 LOT Click to select your answer

Explanation / Answer

Answer is B). The best single predictor variable is LP because the associated regression equation has the lowest p value and highest adjusted Rsqaure= 0.987

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