Question

I am going to write the data here because it was too big to fit into the picture.

RENT Beds Age Blocks Month

7,300 6 13 0.5 June

4,800 5 5 1.5 June

3,000 3 13 1 July

4,100 5 10 2 June

8,000 4 12 1 August

8,100 5 13 1 July

1,700 3 6 2 June

2,800 3 5 2.5 July

10,500 6 21 1.5 August

8,800 5 17 0.5 August

3,100 5 11 1.5 June

1,100 2 15 3 August

1,800 3 11 2 August

4,400 4 9 1 June

10,300 5 18 1 July

7,600 4 12 1 July

6,100 5 3 2 August

900 2 15 2 June

12,700 5 11 0.5 July

3,300 4 8 1.5 June

7,900 5 13 1.5 August

12,300 4 1 0.5 August

8,800 6 22 0.5 July

7,100 6 17 1 July

A reality company would like to develop a regression model to help it set weekly rental rates for beach properties during the summer season in a paricular area. The ndependent variables for this model are the number of bedrooms a property has, its age, the number of blocks away from the ocean i is, and the rental month (June, July, or August) These data are shown in the accompanying table for randomly selected rental properties Complete parts a through d below Click the kcon to view the data table a. Using technology,construct a regression model using all of the independent vanables (Let vanable Mon1 be one of the dummy variables for the month. Assign a 1 to July for this variable Let Mon2 be another dummy variable for the month Assign a 1 to August for this variable) Complete the regression equation for the model below, where y - Rent (5), x Bedrooms, 2 Age, Blocks,4-Mont, and xs Mon2 Round to the nearest whole number as needed ) b. Interpret the meaning of each of the regression coefticients for the dummy variables Select the correct choice below and til in the answer boxes to complete your cheice r a (Round to the nearest dollar as needed) more per week than June rentas August rentals averages more per week than June rental less per week than August rentals more per week than June rentals O A. July rentals average s OB. o c June rentals average sless per week than August rentals July rentals average s July rentals average $r less per week than June rentals August rentals average S OD. June rentals average $less per week than July rentals July rentals average sless per week than August rentals Click to select your answer(s)

Answer 1

data

RENT	Beds	Age	Blocks	Month	Beds	Age	Blocks	Mon1	Mon2
7,300	6	13	0.5	June	6	13	0.5	0	0
4,800	5	5	1.5	June	5	5	1.5	0	0
3,000	3	13	1	July	3	13	1	1	0
4,100	5	10	2	June	5	10	2	0	0
8,000	4	12	1	August	4	12	1	0	1
8,100	5	13	1	July	5	13	1	1	0
1,700	3	6	2	June	3	6	2	0	0
2,800	3	5	2.5	July	3	5	2.5	1	0
10,500	6	21	1.5	August	6	21	1.5	0	1
8,800	5	17	0.5	August	5	17	0.5	0	1
3,100	5	11	1.5	June	5	11	1.5	0	0
1,100	2	15	3	August	2	15	3	0	1
1,800	3	11	2	August	3	11	2	0	1
4,400	4	9	1	June	4	9	1	0	0
10,300	5	18	1	July	5	18	1	1	0
7,600	4	12	1	July	4	12	1	1	0
6,100	5	3	2	August	5	3	2	0	1
900	2	15	2	June	2	15	2	0	0
12,700	5	11	0.5	July	5	11	0.5	1	0
3,300	4	8	1.5	June	4	8	1.5	0	0
7,900	5	13	1.5	August	5	13	1.5	0	1
12,300	4	1	0.5	August	4	1	0.5	0	1
8,800	6	22	0.5	July	6	22	0.5	1	0
7,100	6	17	1	July	6	17	1	1	0

using Excel Mon1 and Mon2 can be created using

=IF(E2="July",1,0)

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.899413478
R Square	0.808944604
Adjusted R Square	0.755873661
Standard Error	1739.050417
Observations	24
ANOVA
	df	SS	MS	F	Significance F
Regression	5	230492249	46098449.8	15.24270258	6.30545E-06
Residual	18	54437334.34	3024296.352
Total	23	284929583.3
	Coefficients	Standard Error	t Stat	P-value	Lower 95%
Intercept	3616	2427	1.489682129	0.153621637	-1483.696235
Beds	1132	383	2.958766744	0.008405361	328.2686748
Age	-85	75	-1.124864608	0.275423125	-242.8401484
Blocks	-2609	683	-3.819508663	0.001255599	-4043.437346
Mon1	2644	948	2.789319788	0.012110618	652.5466394
Mon2	3532	882	4.002272184	0.00083559	1677.873309

y^ = 3616 + 1131 x1 -85 x2 -2609 x3 + 2644 x4 +3532 x5

b)

option A) is correct

July rental 2644 than June

August rental 3532 than June

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