Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 14 - Review - Case Study - Housing Boom - Page 734: d

Answer

There is not enough evidence to conclude that there is a linear relation between bathrooms, age and rooms with price. There is enough evidence to conclude that there is a linear relation between acres, bedrooms and square footage with price.

Work Step by Step

See the results obtained in item (b) 1) $H_0: β_1=0$ versus $H_1: β_1\ne0$ $t_0=3.22$ with a P-value $=0.004\ltα=0.05$. Reject the null hypothesis. 2) $H_0: β_2=0$ versus $H_1: β_2\ne0$ $t_0=-2.50$ with a P-value $=0.021\ltα=0.05$. Reject the null hypothesis. 3) $H_0: β_3=0$ versus $H_1: β_3\ne0$ $t_0=0.49$ with a P-value $=0.632\gtα=0.05$. Do not reject the null hypothesis. 4) $H_0: β_4=0$ versus $H_1: β_4\ne0$ $t_0=3.53$ with a P-value $=0.002\ltα=0.05$. Reject the null hypothesis. 5) $H_0: β_5=0$ versus $H_1: β_5\ne0$ $t_0=1.48$ with a P-value $=0.155\gtα=0.05$. Do not reject the null hypothesis. 6) $H_0: β_6=0$ versus $H_1: β_6\ne0$ $t_0=1.80$ with a P-value $=0.086\gtα=0.05$. Do not reject the null hypothesis.
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