Question

Question 13 Not yet answered Points out of 1.00 P Flag question A Realtor examines the factors that influence the price of a house in Arlington, Massachusetts. He collects data on recent house sales (Price, in $1000s) and notes each house's square footage (Sqft) and the number of bedrooms (Beds). Using the following regression analysis output, at 0.05 level of significance, which of the following predictors is significant in explaining the price (Y) of a house? ANOVA df MS F SS 395,101.98 P-value 0.00000 Regression Error Total 33 651,138.45 Coefficients 193.279 0.187 t Stat 2.93 Intercept Std Error 65.9014 0.0297 23.4919 P-value 0.00606 0.00000 0.61769 Sqft Beds -0.504

Answer 1

To answer this question, the relevant column you need to see is the P-value

• If p-value < 0.05 (level of significance) then the predictor is significant
• If p-value > 0.05 (level of significance) then the predictor is NOT significant

Based on this criterion we see that the Sqft(p-value=0.00000) is significant while the Beds(p-value=0.61769) is not significant. The answer therefore becomes:

Square Footage (Sqft)

SQuare footage(Sqft)

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