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Home prices Many variables have an impact on determining the price of a house. A few of

Stats Modeling the World | 4th Edition | ISBN: 9780321854018 | Authors: David E. Bock, Paul F. Velleman, Richard D. De Veaux ISBN: 9780321854018 481

Solution for problem 15 Chapter 28

Stats Modeling the World | 4th Edition

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Stats Modeling the World | 4th Edition | ISBN: 9780321854018 | Authors: David E. Bock, Paul F. Velleman, Richard D. De Veaux

Stats Modeling the World | 4th Edition

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Problem 15

Home prices Many variables have an impact on determining the price of a house. A few of these are Size of the house (square feet), Lotsize, and number of Bathrooms. Information for a random sample of homes for sale in the Statesboro, Georgia, area was obtained from the Internet. Regression output modeling the Asking Price with Square Footage and number of Bathrooms gave the following result: Dependent Variable is Asking Price s = 67013 R-Sq = 71.1, R-Sq (adj) = 64.6, Predictor Coeff SE(Coeff) t-Ratio P-Value Intercept -152037 85619 -1.78 0.110 Baths 9530 40826 0.23 0.821 Sq ft 139.87 46.67 3.00 0.015 Analysis of Variance Source DF SS MS F-Ratio P-Value Regression 2 99303550067 49651775033 11.06 0.004 Residual 9 40416679100 4490742122 Total 11 1.39720E+11 a) Write the regression equation. b) How much of the variation in home asking prices is accounted for by the model? c) Explain in context what the coefficient of Square Footage means. d) The owner of a construction firm, upon seeing this model, objects because the model says that the number of bathrooms has no effect on the price of the home. He says that when he adds another bathroom, it increases the value. Is it true that the number of bathrooms is unrelated to house price? (Hint: Do you think bigger houses have more bathrooms?)

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Where Do Data Come From The field of statistics is applicable in every discipline. To give an idea of how widespread its use is, consider the following examples illustrating the scope of applications: From ratemyprofessors.com, STAT 110 instructors often get comments about the practice test looking like the real exam…..should you believe this claim Here are some interesting stats from Exam 2 in a recent semester Summary statistics: Column n Mean Variance Std. Dev. Std. Err. Median Range Min Max Q1 Q3 Exam 2 379 78.51715 318.37735 17.843132 0.9165401 82 102 0 102 70 90 • • Claim found on MedPageToday, Jan. 14, 2013, “Fast Foods Tied to Allergies, Excema in Kids” http://www.medpagetoday.com/Pediatrics/GeneralPediatrics/36848 A

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Chapter 28, Problem 15 is Solved
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Textbook: Stats Modeling the World
Edition: 4
Author: David E. Bock, Paul F. Velleman, Richard D. De Veaux
ISBN: 9780321854018

The full step-by-step solution to problem: 15 from chapter: 28 was answered by , our top Statistics solution expert on 03/16/18, 04:57PM. The answer to “Home prices Many variables have an impact on determining the price of a house. A few of these are Size of the house (square feet), Lotsize, and number of Bathrooms. Information for a random sample of homes for sale in the Statesboro, Georgia, area was obtained from the Internet. Regression output modeling the Asking Price with Square Footage and number of Bathrooms gave the following result: Dependent Variable is Asking Price s = 67013 R-Sq = 71.1, R-Sq (adj) = 64.6, Predictor Coeff SE(Coeff) t-Ratio P-Value Intercept -152037 85619 -1.78 0.110 Baths 9530 40826 0.23 0.821 Sq ft 139.87 46.67 3.00 0.015 Analysis of Variance Source DF SS MS F-Ratio P-Value Regression 2 99303550067 49651775033 11.06 0.004 Residual 9 40416679100 4490742122 Total 11 1.39720E+11 a) Write the regression equation. b) How much of the variation in home asking prices is accounted for by the model? c) Explain in context what the coefficient of Square Footage means. d) The owner of a construction firm, upon seeing this model, objects because the model says that the number of bathrooms has no effect on the price of the home. He says that when he adds another bathroom, it increases the value. Is it true that the number of bathrooms is unrelated to house price? (Hint: Do you think bigger houses have more bathrooms?)” is broken down into a number of easy to follow steps, and 220 words. Stats Modeling the World was written by and is associated to the ISBN: 9780321854018. Since the solution to 15 from 28 chapter was answered, more than 236 students have viewed the full step-by-step answer. This textbook survival guide was created for the textbook: Stats Modeling the World, edition: 4. This full solution covers the following key subjects: . This expansive textbook survival guide covers 31 chapters, and 1357 solutions.

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