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Mathematics, 10.05.2021 16:40 ttrump03
You work for a Realtor agency and part of the agency's job is to advise clients on the asking price. Based on your experience you know that buyers tend to focus on the size of the house, the number of bedrooms, number of bathrooms, and the age of house. You take a sample from the hundreds of houses that the agency sold over the past six months and plan to run a regression analysis in order to find out which variables significantly impact price and how.
a. State the null and alternative hypothesis for each IV.
b. Explain how you expect each IV to impact the DV.
c. Conduct regression analysis, find the final model in which only significant IVs remain.
d. Recommend an asking price for a client whose house is 1800 squared feet, has 3 bedrooms, 2 bathrooms, and was constructed in 1980.
Price Size Bedrooms Baths Age
$235,000.00 1,530 3 2 6
$375,000.00 2,380 4 3 43
$199,950.00 720 2 1 2
$258,000.00 1,040 2 2 40
$96,500.00 484 1 1 43
$237,000.00 1,584 3 3 23
$829,000.00 2 ,701 5 3 7
$200,000.00 952 2 2 18
$328,500.00 1,098 3 3 75
$365,000.00 2,004 3 2 35
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