Page of 2 A commercial real estate company evaluates vacancy rates, square foota
ID: 3054309 • Letter: P
Question
Page of 2 A commercial real estate company evaluates vacancy rates, square footage, rental rates, and operating expenses for commercial properties in a large metropolitan area in order to provide clients with quantitative information upon which to make rental decisions. The data from 81 properties consists of rental rates ) in percent, age (x) in years, operating expenses and taxes (x2), vacancy rates (x3) in proportions, and total square footage (x4) in feet squared. Minitab output is on the next page a. Write the multiple linear regression model. b. What is the interpretation of ß, in this model? c. Give the estimated regression equation from Minitab. d. Look at the ANOVA table from Minitab. You don't have to calculate anything; just look at it. Test for the global utility of the model at the 5% significance level. Give the hypotheses, test statistic, and P-value from Minitab, and state the conclusion. e. f. Use ???3ß4, and the standard Create 95% confidence intervals for ??, ?3, and ?4. errors from the Minitab output. The estimates B are Coef and the standard errors s are SE Coef Predict the rental rate of a 5 year old property with 4.1 tax rate, 0.16 vacancy rate, and area of 100,000 square feet. g. h. Give the coefficient of multiple determination and the adjusted coefficient of multiple determination. 288 a FSExplanation / Answer
1)
Rental rates = bo-b1*age + b2*tax + b3*vacancy + b4*area
2)
With one year increase in age, there is 0.142 units decrease in rental rate
3)
Rental rates = 12.201-0.142*age + 0.282*tax + 0.62*vacancy + 0.000008*area
4)
Look at anova table
5)
Ho:model is not significant
H1: model is significant
With (F=26.76, p<.05),I reject the null hypothesis at 5% level of significance and then prove that the model is significant
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.