Question

please answer both

Question 1 (5 points) Question 1(A) You have performed a simple linear regression model to understand the effect of Number of Bedrooms on House Price. House Price is in Thousand $ and Number of Bedrooms is in number of bedrooms Coefficient t-statistic p-value Intercept 28.77 6.52 <0.000 Number of Bedrooms 13.27 9.18 <0.000 *** How do you interpret the coefficient 13.27 of Number of Bedrooms? Select one from below: Increase in 13.27 bedroom square foot will lead to about $1 Thousand increase in house price. Increase in ten bedrooms will lead to about $13.27 Thousands increase in house price Increase in one bedroom will lead to about $100 increase in house price. Increase in one bedroom will lead to about $13.27 Thousands increase in house price.

Answer 1

1. Coefficient of number of bedrooms = 13.27

Increase in one bedroom will lead to about $13.27 Thousands increase in price (Option 4)

2. Null hypothesis: There is no significant linear relationship between number of bedrooms on house price, that is beta = 0 (Option 3)