Please show all work - the help is much appreciated! The appraisal of a warehous

Question

Please show all work - the help is much appreciated!

The appraisal of a warehouse can appear straightforward compared to other appraisal assignments. A warehouse appraisal involves comparing a building that is primarily an open shell to other such buildings. However, there are still a number of warehouse attributes that are plausibly related to appraised value. The following is JMP output of a simple linear regression model of sale price per square foot (y) on truss height (x). a) Determine the equation of the least squares simple linear regression line. b) Give a point prediction of price when truss height is 50 ft, or explain why it would be unreasonable to do so. c) Find the coefficient of determination and interpret it. d) Conduct a hypothesis test to see whether there is a significant linear relationship between sale price per square foot and truss height at alpha = 0.10.

Explanation / Answer

a) y^ = 23.772147 + 0.9871509*x

b) when x = 50

y^ = 23.772147 + 0.9871509*50

= 73.129692

unreasonable as 50 > all given sample height

c)

R^2 = SSR/SST = 890.355/924.4361 =0.9631330

96.313 % of variation is explained by given model

d)

TS = 0.9871509/0.046842 = 21.07 >> critical value

hence we reject the null and conclude that there is significant linear relationship

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