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: e

Answer

$ŷ=29.1+222.4x_1-58.5x_2+0.2038x_4$

Work Step by Step

According to item (d), bathrooms, age and rooms failed in rejecting the null hypothesis. That is, their coefficients are not significantly different from 0. Let's remove them at once from the model: In MINITAB, enter the Acres values in C1, the Bedrooms values in C2, the Sq. ft. values in C4 and the Price values in C7. Select Stats -> Regression -> Regression -> Fit Regression Model Enter C7 in "Responses" and C1 C2 C4 in "Continuous Predictors" The least-squares regression line will be shown in "Regression Equation", where C7 is $ŷ$ (Price), C1 is $x_1$ (Acres), C2 is $x_2$ (Bedrooms) and C4 is $x_4$ (Sq. ft.). Now, there is no P-value $\gtα=0.05$. We have our best model: $ŷ=29.1+222.4x_1-58.5x_2+0.2038x_4$
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