Any stats guys can help me with this question please!! Thank you! With calculati

Question

Any stats guys can help me with this question please!! Thank you!

With calculation will be appreciated!!

The following is the Correlation and Regression output from a Multiple Regression run in Excel. The dependent variable is "Median Home Value" (MEDHOMEVALD. The other variables are the Independent variables: "Robbery rate" (ROBBERY "%Working outside county of residence" (WORKOUTSIDE), ROWHOUSE with 5 or more units" (5+ UNITS), of Housing very Crowded" (1.5 PER RM), & Houses that use LP Gas" LP GAS). Please answer the following questions: a. Which variables pass the "P-Value test"? b. Which variable pairs are "multicollinear"? c. Compute the Coefficient of determination (R-Square) for each independent variable. d. Write out the complete regression equation. MEDHOMEVAL ROBBERY WORKOUTSIDE Row HOUSE 5+ UNITS 1.5 PER RM LP GAS MEDHOMEVAL 1 ROBBERY 0.254 WORK OUTSIDE 0.235 1 -0.043 1 -0.090 ROW HOUSE 0.377 0.705 5+ UNITS 0.648 0.725 0.004 0.619 1.5 PER RM 0.652 0.431 0.057 0.314 0.658 1 LP GAS -0.617 -0.374 0.041 -0.413 -0.509 -0.404

Explanation / Answer

Answers

a. The variables Robbery rate, %working outside country of residence, % with 5 or more units, % of housing very crowded, % houses that use LP Gas pass the P-value test because the p-values associated with these variables are significant at significance level 0.05.

b. Robbery rate and ROWHOUSE (%) are multicollinear as there is strong correlation exists between these two variables.

Robbery rate and % with 5 or more units are multicollinear as there is strong correlation exists between these two variables.

c.

Robbery rate

Coefficient of determination, R2 = (0.254)2 = 0.065

%working outside country of residence

Coefficient of determination, R2 = (0.235)2 = 0.055

ROWHOUSE (%)

Coefficient of determination, R2 = (0.377)2 = 0.142

% with 5 or more units

Coefficient of determination, R2 = (0.648)2 = 0.420

% of housing very crowded

Coefficient of determination, R2 = (0.652)2 = 0.425

% houses that use LP Gas pass

Coefficient of determination, R2 = (-0.617)2 = 0.381

d. The estimated regression equation is given by,

Median Home Value = 81789.73 – 217.82 * Robbery rate + 865.87 * %working outside country of residence + 167081.38 * ROWHOUSE (%) + 268303.46 * % with 5 or more units + 715776.56 * % of housing very crowded – 276214.97 * % houses that use LP Gas pass

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