Statistics: Informed Decisions Using Data (4th Edition)

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

Chapter 14 - Section 14.3 - Assess Your Understanding - Applying the Concepts - Page 724: 29e

Answer

$ŷ=24.1+0.0718x_1+54.9x_3$ All the slopes are significantly different from zero. There is enough evidence to conclude that there is a linear relation between square footage and baths with asking price.

Work Step by Step

Let's remove the explanatory variable bedrooms (the highest P-value). In MINITAB, enter the Square Footage values in C1, the Baths values in C3 and the Asking Price values in C4. Select Stats -> Regression -> Regression -> Fit Regression Model Enter C4 in "Responses" and C1 C3 in "Continuous Predictors" The least-squares regression line will be shown in "Regression Equation", where C4 is $ŷ$ (Asking Price), C1 is $x_1$ (Square Footage) and C3 is $x_3$ (Baths). $ŷ=24.1+0.0718x_1+54.9x_3$ 1) $H_0: β_1=0$ versus $H_1: β_1\ne0$ $t_0=2.77$ with a P-value $=0.020\ltα=0.05$. Reject the null hypothesis. 2) $H_0: β_3=0$ versus $H_1: β_3\ne0$ $t_0=2.49$ with a P-value $=0.032\ltα=0.05$. Reject the null hypothesis.
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