The commercial division of a real estate firm is conducting a regression analysi
ID: 3376282 • Letter: T
Question
The commercial division of a real estate firm is conducting a regression analysis of the relationship between x, annual gross rents (in thousands of dollars), and y, selling price (in thousands of dollars) for apartment buildings. Data were collected on several properties recently sold and the following computer output was obtained.
a. How many apartment buildings were in the sample?
b. Write the estimated regression equation (to 2 decimals if necessary).
? = + x
c. What is the value of sb1 (to 4 decimals)?
d. Use the F statistic to test the significance of the relationship at a .05 level of significance.
Compute the F test statistic (to 2 decimals).
What is the p-value?
p-value is Selectless than .01between .01 and .025between .025 and .05between .05 and .10greater than .10Item 6
What is your conclusion?
Select
Conclude that the selling price is related to annual gross rents.
or
Cannot conclude that the selling price is related to annual gross rents.Item 7
e. Predict the selling price of an apartment building with gross annual rents of $50,000 (to 1 decimal).
$ thousands.
Explanation / Answer
a. How many apartment buildings were in the sample?
8+1=9
total 9 apartments
b. Write the estimated regression equation (to 2 decimals if necessary).
? = + x
y^=20.00+7.29x
c. What is the value of sb1 (to 4 decimals)?
S b1=10,396.30
see below table
d. Use the F statisti
F=4.00
For 2,7 df p=0.0856
between .05 and .10
Do not Reject Null hypothesis.
Cannot conclude that the selling price is related to annual gross rents
SOURCE DF SS F Regression 1 41,587.80 4.000250089 Residual Error 7 10,396.30 Total 8 51,984.10