Question

19: Which statement is correct? A The square of 571 is the best goodness of fit statistic to use for multiple regression analyses B: The Number of Bedrooms is not a significant predictor variable. C. The true value of the partial slope coefficient for Size is between $40,813 and $184,985. D: At the 05 significance level, Size is not a statistically significant predictor of Price. 20. What is the impact of the dummy variable, Pool? Α. The variable is significant, and decreases Price by $25,258. The variable is significant, and increases Price by $25,258. B The variable is not significant, and has no effect on Price D There variable is significant, but has no effect on Price. Extra Credit (5 pt) 21: A news network stated that a study had found a positive correlation between the number of children a worker has and his or her earnings last year. You should conclude that: A people have more children so they can earn more money. В. the data are erroneous because the correlation should be negative. c. correlation does not show causation D adjunct professors have small families

Answer 1

19)
correct option :=D: At level 0.05 size is not significant predictor of price because, from the output we can see that p-value for the size variable is 0.07219 which is > 0.05 hence its not significant to predict Price

20)
Option A: As the coefficient of Pool is -25258 which is negative hence it decreases Price by -25258 and also as it p-value is 0.0025 which is <0.05 hencec is significant, at level 0.05, for predicting price.

21)
Option C :Correlation doesn't always show causation. Which means correlation can be positive and yet the variable dont have a cause and effect on each other.