Question

Consider the following multiple regression: Price = 109.5 + 0.525BDR + 25.1Bath + 0.202Hsize + 0.003Lsize + 0.11Age - 57.9Poor, R = 0.88, SER = 44.2 (23.6) (1.01) (8.64) (0.025) (0.00076) (0.21) (12.32). The numbers in parentheses below each estimated coefficient are the estimated standard errors. A detailed description of the variables used in the data set is available here. Suppose you wanted to test the hypothesis that BDR equals zero. That is, H0: BDR = 0 vs H1: BDR ≠ 0. Report the t-statistic for this test. The t-statistic is (Round your response to three decimal places). Is the coefficient on BDR statistically different from zero at the 5% significance level? A. Yes. B. No. Typically, four-bedroom houses sell for much more than three-bedroom houses. Is this consistent with your previous answer and with the regression more generally? A. Yes. B. No.

          Consider the following multiple regression: Price = 109.5 + 0.525BDR + 25.1Bath + 0.202Hsize + 0.003Lsize + 0.11Age - 57.9Poor, R = 0.88, SER = 44.2 (23.6) (1.01) (8.64) (0.025) (0.00076) (0.21) (12.32). The numbers in parentheses below each estimated coefficient are the estimated standard errors. A detailed description of the variables used in the data set is available here. Suppose you wanted to test the hypothesis that BDR equals zero. That is, H0: BDR = 0 vs H1: BDR ≠ 0. Report the t-statistic for this test. The t-statistic is (Round your response to three decimal places). Is the coefficient on BDR statistically different from zero at the 5% significance level?
A. Yes.
B. No.

Typically, four-bedroom houses sell for much more than three-bedroom houses. Is this consistent with your previous answer and with the regression more generally?
A. Yes.
B. No.

Added by Melissa M.

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