1). Mulberry Realty sells homes in the northeast section of the United States. A
ID: 3268118 • Letter: 1
Question
1). Mulberry Realty sells homes in the northeast section of the United States. A frequently asked question by prospective buyers is: If we buy this house, how much can we expect to pay to heat it during the winter? The research division of Mulberry is asked to develop some guidelines for heating costs (Cost) (measured in $) for single family homes. The division decides three variables are related to heating costs: (1) the mean daily outside temperature (Temp) (in degrees Fahrenheit); (2) the number of inches of attic insulation (Insulation); and (3) the age of the furnace in the house (Age) (measured in years). The division collected data during the month of January for a sample of homes. Parentheses contain the variable names (in bold) as listed in the data set.
e. For the slope coefficient with the smallest value (in absolute value), test to see if it has the directional relationship hypothesized in part (b). Alpha = 0.05. (15 pts)
f. Construct and interpret a 98% confidence interval for the largest slope coefficient (in absolute value). (9 pts)
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please write out clearly and label as e and f
Cost ($) Temp (deg) Insulation (ins.) Age (yrs) 250 35 3 6 360 29 4 10 165 36 7 3 43 60 6 9 92 65 5 6 200 30 5 5 355 10 6 7 290 7 10 10 230 21 9 11 120 55 2 5 73 54 12 4 205 48 5 1 400 20 5 15 320 39 4 7 72 60 8 6 272 20 5 8 94 58 7 3 190 40 8 11 235 27 9 8 139 30 75
please write out clearly and label as e and f
Explanation / Answer
e)
for the slope coefficient with the smallest value (in absolute value), test to see if it has the directional relationship hypothesized in part (b). Alpha = 0.05.
temperature has lowest beta coefficient
95 % confidence level is
f. Construct and interpret a 98% confidence interval for the largest slope coefficient (in absolute value).
Insulation has highest beta coefficient
98 % confidence interval -
SUMMARY OUTPUT Regression Statistics Multiple R 0.896755299 R Square 0.804170066 Adjusted R Square 0.767451954 Standard Error 51.04855358 Observations 20 ANOVA df SS MS F Significance F Regression 3 171220.4728 57073.49094 21.90118203 6.56178E-06 Residual 16 41695.27717 2605.954823 Total 19 212915.75 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 98.0% Upper 98.0% Intercept 427.1938033 59.60142931 7.167509374 2.23764E-06 300.8444175 553.5431892 273.2142745 581.1733322 Temp (deg) -4.582662626 0.772319353 -5.93363692 2.10035E-05 -6.219906516 -2.945418736 -6.577939778 -2.587385473 Insulation (ins.) -14.83086269 4.754412281 -3.11938928 0.006605963 -24.90976648 -4.751958899 -27.11382589 -2.547899487 Age (yrs) 6.101032061 4.012120166 1.520650381 0.147862484 -2.404282741 14.60634686 -4.264228974 16.4662931Related Questions
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