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Below is a multiple regression in which the dependent variable is market value of houses a

Below is a multiple regression in which the dependent variable is market value of houses and the independent variables are the age of the house and square footage of the house. The regression was estimated for 42 houses.

 

SUMMARY OUTPUT

 

Regression Statistics

Multiple R0.745495

R Square0.555762

Adjusted R Square0.532981

Standard Error7211.848

Observations42

 

ANOVA

dfSSMSFSignificance F

Regression2              25376501711.27E+09              24.39544              1.3443E-07

Residual39              202841959152010759

Total              41              4566069762

 

              Coefficients              Standard              t Stat              P-value              Lower 95%              Upper 95%

Error

Intercept              47331.38              13884.34664              3.408974              0.001528              19247.6673              75415.0958

House Age              -825.161              607.3128421              -1.35871              0.182046              -2053.5662              403.243744

Square Feet40.911076.6965239946.109299              3.65E-07              27.3660835              54.4560534

60) Refer to Scenario 2. What percentage of the variation in the dependent variable, Market Value, is explained by the regression model?

61) Refer to Scenario 2. If the age of a house increases by 1 year given that the square feet is held constant, what is the impact on the house's market value?

62) Refer to Scenario 2. By examining the t-statistics associated with the regression coefficients, at the 5 percent significance level, which of the two independent variables are statistically different from zero?

63) Refer to Scenario 2. Based on the 95 percent confidence intervals for each of the partial regression coefficients, which independent variable is statistically different from zero and why?

64) Refer to Scenario 2. What are the units of measurement for the standard error of the estimate?

65) Elaborate on the statement "Every multiple regression analysis is influenced by the sample of the data used."

66) Briefly explain why empirical consumer demand studies such as Patrick McCarthy's study of automobile demand are relevant to managers.

67) Why are estimated models of demand and consumer behavior useful to managers?

 

Dec 07 2019 View more View Less

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