QUESTION 17 Your client is now concerned whether the house prices in Lincoln Dar

Question

QUESTION 17

Your client is now concerned whether the house prices in Lincoln Dark and Hyde Dark are the same. To collect data on house prices in Hyde Dark, your team randomly selects 9 houses. The sample average is $400K for Hyde Dark. The sample standard deviation for Hyde Dark is $90K. You decide to use the data for Lincoln Dark that you previously collected using 25 randomly selected houses. The sample average for Lincoln Dark was $500K. The sample standard deviation for Lincoln Dark was $100K. Test the hypothesis that the average house price in Lincoln Dark is $50K more expensive than the average house price in Hyde Dark vs. the alternative that they are not. (A ghost of your professor appears to you and it shouts -- it is a two-sided hypothesis). Use alpha 10%.

Your client asks you to provide her the value of test statistic up to 3 decimal points.

15 points (Extra Credit)   

QUESTION 18

You pick up your client, Princess Leia, from her home. Ms. Leia shares her company’s model used to estimate the house prices in Lincoln Dark. (see below) Note: p-values are already in percent.

Based on the Excel output above which coefficients are statistically significant at alpha 1%. Choose all that apply

Intercept

Number of Bathrooms

Number of rooms

Square Feet

School District Rating

Age

10 points   

QUESTION 19

You pick up your client, Princess Leia, from her home. Ms. Leia shares her company’s model used to estimate the house prices in Lincoln Dark. (see below) Note: p-values are already in percent.

Based on the Excel output above which coefficients are statistically significant at alpha 5%. Choose all that apply

Intercept

Number of Bathrooms

Number of rooms

Square Feet

School District Rating

Age

10 points   

QUESTION 20

Explain to the client what null hypothesis and alternative hypothesis does the Excel test when it reports p-value for the Age coefficient. Be precise to get full credit.

Path: p

Words:0

5 points (Extra Credit)   

QUESTION 21

You pick up your client, Princess Leia, from her home. Ms. Leia shares her company’s model used to estimate the house prices in Lincoln Dark. (see below)

Compute the predicted house price for a house with 2 bathrooms, 3 rooms, 2000 square feet, with school district rating 5, and with age of 18 years based on the above model.

5 points   

QUESTION 22

You pick up your client, Princess Leia, from her home. Ms. Leia shares her company’s model used to estimate the house prices in Lincoln Dark. (see below)

If the actual price for a house with 2 bathrooms, 3 rooms, 2000 square feet, with school district rating 5, and with age of 18 years is 183,000 what is the error? (A ghost of your professor shouts to you "remember Error = Actual - Predicted")

5 points   

QUESTION 23

To celebrate a closure of the deal, Princess Leia’s father, Lord Vader, wants to buy an expensive bottle of wine. However, he wants to make sure he doesn’t overpay for the wine. So, he commissions a study on effects of environmental variables and age on the price of wine. Output for one of the models that Lord Vader considers to use to estimate the price of wine, is below. It shows the regression of the price of wine versus average temperature (in Fahrenheit degrees) during ripening period and the age of the bottle (in years).

What is the Upper Limit of the 95% confidence interval for Age coefficient to 3 decimal points precision.

5 points   

QUESTION 24

Another analyst at Death Star Enterprises suggests a different model that uses 3 variables to predict the price of wine -- average temperature, age and average points earned by Michael Jordan in each season he played for Chicago Bulls.

Should Darth Vader use R2 or Adjusted R2 to compare the two models? Choose the best answer from the choices below:

R2

Adjusted R2

Neither, there is no way to compare the two models

Randomly flip a coin to choose between R2 and Adjusted R2

1.

Intercept

2.

Number of Bathrooms

3.

Number of rooms

4.

Square Feet

5.

School District Rating

6.

Age

Explanation / Answer

18

there is no dat ain the question , however you can simply answer this question by comparing the respective p values with the apha 1%

so

if the p value in percentage is less than the alpha of 1% , then the variable is statistically signficant.

So simply compare the p values and all the variables whose p value is less than 1% are considered signficant

19

there is no data in the question , however you can simply answer this question by comparing the respective p values with the apha 5%

so

if the p value in percentage is less than the alpha of 5% , then the variable is statistically signficant.

So simply compare the p values and all the variables whose p value is less than 5% are considered signficant

only this type the condition is more relaxed. so you might end up having more signficant variables

Please note that we can answer only 1 question at a time, also kindly provide the data for the remaining questions so that it can be answered.

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