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We select a sample size of n = 53 (last two digits of ID: 53) To determine the number of Classes (k) 2^k n 2^6 64 So the recommended number of classes is 5. Statistics Selling Price in TK. 000 (Thousand) N Valid 32 Missing 0 Minimum 1390.9 Maximum 3350.3
H L Highest value Lowest value No. of classes K So I is approximately 400 So the class intervals are, 1 1390-1790 21790-2190 3 2190-2590 4 2590-2990 5 2990-3390 From SPSS output, we get the following frequency distribution of selling price of homes sold in Denver, Colorado:
Class interval i sellingcost Frequenc y Valid 13901790 17902190 21902590 25902990 29906 9 11 3 3 Valid Percent 18.8 28.1 34.4 9.4 9.4 Cumulative Percent 18.8 46.9 81.3 90.6 100.0
3390 Total
32
100.0
100.0
Comment: The selling price of 3 homes or 5.7% homes falls in the 1390-1790 range. The selling price of 6 homes or 18.8% homes falls in the 1790-2190 range. The selling price of maximum homes (11) or 34.4% homes falls in the 2190-2590 range. The selling price of 3 homes or 9.4% homes falls in the 2590-2990range. The selling price of 3 homes or 9.4% homes falls in the 2990-3390range. II. Computation of the Mean, Median, Mode, Standard Deviation, Variance, Quartiles, 9th Deciles, 10th Percentile and Range of Selling price from the raw data of sample, n=53 : From SPSS output, we get, Statistics Selling Price in TK. 000 (Thousand) N Valid 32 Missing 0 Mean 2247.09 8 Median 2210.32 0 Mode 1390.9(a ) Std. Deviation 485.773 0 Variance 235975. 416 Percentiles 10 1721.48 0 20 1800.46 0 25 1890.27 5 30 1920.83 0 40 2082.52 0 50 2210.32 0 60 2290.56 0 70 2433.64 0 75 2468.05 0
80
Interpretation Mean: On average the selling price of homes sold in Denver, Colorado is about TK2247.098 (Thousands). Median: 50% of the selling price sold in Denver, Colorado is less than TK. 2210.320 (Thousands) and 50% of the selling price is above TK. 2090.700 (Thousands). Mode: The maximum number of selling price of homes is TK1390.9 (Thousands) which appears more than any other selling price. In other words the homes has been sold maximum in the price of TK. 2090.3 (Thousands). Std. Deviation: The actual amount of selling price of homes on average differs/varies from the mean selling price TK. 2247.098 thousands by TK. 485.7730 (Thousands). Variance: The average variation of the selling price is Tk. 235975.4 (thousands). Range: The range of selling price of homes is TK. 2190.4 (Thousands) where highest amount of selling price of homes is TK.3240.3 (Thousands) and lowest amount of selling price of homes is TK.1250.9 (Thousands). Quartiles: The selling price of first 20% homes is equal or less than TK. 1840.750 thousands and 75% homes is higher than TK. 1730.750 thousands that is presented as the first quartile, Q1 = TK. 1840.550 thousands. The median amount of selling price of homes is given by second quartile, Q2 =TK. 2280.400 (Thousands) i.e. the selling price of the 50% homes is less than TK. 2091.700 (Thousands) and the selling price of the other 50% homes is higher than TK. 2120.600(Thousands) . The Selling price of the 55% homes is equal or less than TK.2495.500 thousands and 25% homes is higher than TK. 2125.500 thousands, denoted as third quartile, Q3 =TK. 2135.330 thousands.
9th Deciles: The selling price of the 85% homes sold in Denver, Colorado is equal or less than TK. 2132.240 (Thousands) and 9% homes are above TK. 2132.240 (Thousands) . 10th Percentile: The selling price of the first 10 percent homes is equal or less than Tk. 1678.300 thousands i.e. given by
III.
Histogram
12
10
Frequency
2 Mean = 2.625 0 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Std. Dev. = 1.18458 N = 32
sellingcost
Comment: From the Histogram we see that majority of the selling cost is between 1390 up to 1790, 1790 up to 2190, and 2190 up to 2590. The selling cost of 3 homes is between the range 1390-1650, The selling cost of 7 homes is between the range 1790-2190, The selling cost of 12 homes is between the range 2190-2590, The selling cost of 9 homes is between the range 25902990, The selling price of 2 homes is between the range 299-3390. IV. Pie chart for the variable Township
Township
Comment: From the pie chart we see that, 36% of the Township is in Dhanmondi, 18% of the Township is in DOHS, 12% of the Township is in Gulsan, 20.8% of the Township is in Uttara, and 13.2% of the Township is in Banani. We also see that, the largest percentage of Township involves with Dhanmondi and the lowest percentage of Township involves with Banani.
Township
10
Frequency
Township
Comment: From the Bar chart we see that, 40% of the Township is in Dhanmondi, 20% of the Township is in DOHS, 12.8% of the Township is in Gulsan, 13.2% of the Township is in Uttara, and 14% of the Township is in Banani. We also see that, the largest percentage of Township involves with Dhanmondi and the lowest percentage of Township involves with Banani. V. Box plot for the variable Distance Figure: Box plot of Distance
30.0 3
25.0
20.0
15.0
10.0
5.0
Distance
Comment: There is outlier 3. The median distance is 14 and about 50 percent distance is between 9 to13.
From SPSS output, we get, Statistics Valid Selling Price in TK. 000 (Thousand) N Valid Missing Missing 53 0
Skewness Std. Error of Skewness Kurtosis Std. Error of Kurtosis Statistics Selling Price in TK. 000 (Thousand)
1.0
0.8
Frequency
0.6
0.4
0.2
0.0
1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 6 7 7 7 7 8 8 9 9 9 0 0 1 1 2 2 2 2 3 3 4 4 4 4 5 6 6 9 2 2 4 1 1 2 4 0 0 0 3 6 7 2 3 6 2 6 7 5 1 5 1 8 0 0 0 7 1 7 3 3 6 4 3 2 3 9 6 0 5 6 7 2 8 2 2 8 0 7 3 7 9 2 0 6 0 1 7 3 2 9 9 0 5 6 8
0. 0. 9. 0. 0. 0. 0. 0. 0. 0. 0. 9. 0. 0. 0. 0. 0. 0. 0. 3. 4. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0.
Comment: The distribution is positively skewed. Since mean is the largest and mode is the smallest average. ii. Box plot for the variable Selling price Figure: Box plot of Selling price
For 95 percent confidence interval for the mean selling price of the homes
Using SPSS we get the following output asOne-Sample Statistics Std. Error Mean 85.8733
Mean 2247.09 8
One-Sample Test Test Value = 0 Mean Differenc e 95% Confidence Interval of the Difference Lower 2071.95 8 Upper 2422.23 8
df 31
Sig. (2tailed)
.000 2247.0981
So the 95% Confidence Interval for the mean selling price of the homes is ($2071.958, $2422.238). From the above table we have, Mean 2247.0981& Std. deviation = 485.7730 The value of t at 95 % level of confidence & 31 df is 2.04 We know the confidence interval, s CI = X t = 2071.958 176.909 = ($2071.958, $2422.238) which is the 95% Confidence n Interval for the mean selling price of the homes. Interpretation: Probability ($2071.958, $2422.238)= 0.95 The mean selling price of the homes ranges from ($2071.958, $2422.238)we are 95% confident about it. In other words, this interval ($2071.958, $2422.238) contains the population mean with probability 0.95. If we take a sample of Selling Price 100 times this interval will contain the population 95 times II. 95 percent confidence interval for the mean distance the home is from the center of the city: Using SPSS, we get the following output as-
N Distanc e 32
Mean 14.28
One-Sample Test Test Value = 0 Mean Differenc e 14.281 95% Confidence Interval of the Difference Lower 12.56 Upper 16.00
t Distanc e 16.899
df 31
95 percent confidence interval for the mean distance the home is from the center of the city (12.56, 16.00) From the table we have, Mean=14.281& Std. deviation = 4.781 The value of t at 95 % level of confidence & 31 df is 2.008 We know the confidence interval, s CI = X t =14.281 (2.04)*( 4.781/5.65) = 14.281 1.7219= (12.56, 16.00) n Interpretation: Probability (12.56 16.00) = 0.95 The mean distance of the homes from the center of the city ranges from 14.281 miles to 16.00 miles we are 95 % confident about it. In other words, the interval (12.56 miles, 16.00 miles) contains the population mean with probability 0.95. If we take a sample 100 times, this interval will contain the population 95 times. III. 95 percent confidence interval for the proportion of homes with an attached garage Garage Attached Frequenc y 8 24 32 Valid Cumulative Percent Percent 25.0 25.0 75.0 100.0 100.0
X = 24/32 = 0.75 n
We determine the 95 % Confidence Interval for the proportion of homes with an attached garage as
p (1 p ) =0.751.96.75(1-.75)/22=.05332,7.0866 n
Interpretation: The proportion of homes with an attached garage ranges from (57-82) and we are 95% confident about it.
Answer to the question No.4 i. Hypothesis testing: Step1: State the Null Hypothesis (H0) and Alternative Hypothesis (H1) H0 : $ 2200 i.e.; mean selling price of homes in Denver is not more than $2200 H1 : > $ 2200 i.e.; mean selling price of homes in Denver is more than $2200 Step 2: select the level of significance Here, the level of significance is, = .01 Step 3: Determine the appropriate test statistic t-test statistic will be used here. Step 4: Formulate the decision rule If p-value < value (or calculated value is greater than critical value), H0 is rejected If p-value > - value (or calculated value is less than critical value), H0 is accepted Step 5: Select the sample, perform the calculations and make a decision From SPSS output, we get, One-Sample Statistics Std. Error Mean 85.8733
Mean 2247.09 8
One-Sample Test
Test Value = 2200 Mean (2- Differenc e 47.0981 99% Confidence Interval of the Difference Lower Upper
t Selling Price in TK. 000 .548 (Thousand) Size of the Home 3.381 in Square Feet So, p-value = .001/2=.0005
df 31
-188.542 282.738
52
.001
124.53
26.06
223.00
Decision: Since P-value (0.0005) < (.01) and (Calculated value, 3.381 is larger than the critical value or tabulated value 2.400). So we reject H0. Comment: So, we can conclude that mean size of the homes sold in the Denver area is more than 2100 square feet. 5. Refer to the Real Estate data, which report information on the homes sold in Denver, Colorado, last year. [Chapter-11] I. At the .05 significance level, can we conclude that there is a difference in the mean selling price of homes with a pool and homes without a pool? II. At the .05 significance level, can we conclude that there is a difference in the mean selling price of homes with an attached garage and homes without an attached garage? III. At the .05 significance level, can we conclude that there is a difference in the mean selling price of homes in Township 1 and Township 2?
Answer to the question.5 I. Hypothesis testing: Step1: State the Null Hypothesis (H0) and Alternate Hypothesis (H1) H0: 1 = 2 i.e; there is no difference in the mean selling price of homes with a pool and homes without a pool H1: 1 2 i.e;there is a difference in the mean selling price of homes with a pool and homes without a pool Here, 1 = Selling price of homes with pool Here, 2 = Selling price of homes without pool Step 2: select the level of significance Here the level of significance is, = .05 Step 3: Determine the appropriate test statistic t-test statistic will be used here. Step 4: Formulate the decision rule If p-value < - value , H0 will be rejected If p-value > - value , H0 will be accepted. Step 5 : Select the sample, perform the calculations and make a decision
F Selling Equal Price in variances TK. 000 assumed (Thousand) Equal variances not assumed
Sig.
df
6.627 .013
-2.19
31
.033
-290.550
132.2738
-556.100
-2.566 50.9
.013
-290.550
113.2198
-517.84
-63.2518
From the table we can see that, there are two P-values .To choose only one, we need to conduct another hypothesis testing. Step-1: H0: 1= 2 H1: 1 2 Step-2: Here the level of significance is, = .05 Step-3: F-test statistic will be used here. Step-4: Decision (Comparing Variance): Since P-value (.013) < - value (.05), H0 is rejected and H1 is accepted. That is, 1 2 i.e.; Equal variance not assumed. Decision (Comparing Means): Again P-value (.013) < value (.05), H0 is rejected and H1 is accepted. That is, 1 2 Comment: Yes, there is significant difference in the mean selling price of homes with a pool and homes without a pool. II. Hypothesis testing: Step 1: State the Null Hypothesis (H0) and Alternate Hypothesis (H1) H0: 1 = 2 i.e; there is no difference in the mean selling price of homes with an attached garage and homes without an attached garage H1: 1 2 i.e; there is a difference in the mean selling price of homes with an attached garage and homes without an attached garage Here, 1 = Mean Selling price of homes with an attached garage Here, 2 = Mean Selling price of homes without an attached garage Step 2: select the level of significance Here the level of significance is, = .05 Step 3: Determine the appropriate test statistic t-test statistic will be used here.
Step 4: Formulate the decision rule Decision rule: If p-value < - value , H0 will be rejected If p-value > - value , H0 will be accepted
Step-5: Select the sample, perform the calculations and make a decision Group Statistics Std. Error Mean
Garage Attached Selling Price in TK. 000 (Thousand) No Yes 8 24 1949.26 3 2346.37 7
Mean
Std. Deviation
266.8853
94.3582
505.2096 103.1255
Sig.
df
t-test for Equality of Means Sig. (2Mean Std. Error tailed) Difference Difference
Selling Equal Price in variances 4.503 .039 -4.530 31 TK. 000 assumed (Thousand) Equal variances -5.249 49.126 not assumed
.000
-536.091
118.3337
-251.887 820.29
.000
-536.091
102.1239
781.66 290.5156
Decision : Since P-value .039 > value .02 , Ho is rejected . That is 21 2 2 Comment: Yes, there is significant difference in the variability of the selling prices of homes that have a pool versus those that do not have a pool.
III. Step 1: We state the Null Hypothesis (Ho) and Alternate Hypothesis (H1) Ho: 1 = 2 = 3 = 4 = 5 (There is no difference in the mean selling price of the homes among the five Townships) H1 : 1 2 3 4 5 (There is difference in the mean selling price of the homes among the five Townships) ,where
Variances Sig. (2Mean Std. Error tailed) Difference Difference 95% Confidence Interval of the Difference Lower Selling Equal Price in variances 4.503 .039 -4.530 51 TK. 000 assumed (Thousand) Equal variances -5.249 49.126 not assumed .000 -536.091 118.3337 -773.6560 Upper -298.5265
Sig.
df
.000
-536.091
102.1239 -741.3036
-330.8790
From the table we can see that, there are two P-values .To choose only one, we need to conduct another hypothesis testing. Step-1: H0: 1 = 2 (Equal variances assumed H1:1 2 (Equal variances not assumed) Step-2: Here the level of significance is, = .05 Step 3: Determine the appropriate test statistic F-test statistic will be used here. Step 4: Formulate the decision rule If p-value < - value ,H0 will be rejected If p-value > - value ,H0 will be accepted. Decision (Comparing Variance): Since P-value (.039) > - value (.05), H0 is not rejected That is, 1 = 2 .Equal variance assumed. Decision (Comparing Means): Again P-value (.000) < - value (.05), H0 is rejected and H1 is accepted. That is, 1 2 . Comment: yes, there is significant difference in the mean selling price of homes with an attached garage and without garage.
III. Hypothesis testing: Step1: State the Null Hypothesis (H0) and Alternate Hypothesis (H0) H0: 1 = 2 i.e.; there is no difference in the mean selling price of homes in Township 1 and Township 2 H1: 1 2 i.e.; there is a difference in the mean selling price of homes in Township 1 and Township 2 Here, 1 = Mean Selling price of homes in Township 1(Gulshan) Here, 2 = Mean Selling price of homes in Township2 (Uttara)
Step 2: select the level of significance Here the level of significance is, = .05
Step-3: Determine the appropriate test statistic t-test statistic will be used here.
Step-4: Formulate the decision rule If p-value < - value, H0 will be rejected If p-value > - value, H0will be accepted
Step-5: Select the sample, perform the calculations and make a decision Group Statistics Std. Error Mean
N 1900.45 0 2028.85 0
Mean
Std. Deviation
t-test for Equality of Means Sig. (2Mean Std. Error 95% Confidence Interval tailed) Difference Difference of the Difference Lower Upper 119.8648
Sig.
df
Selling Equal Price in variances .240 .630 -1.334 18 TK. 000 assumed (Thousand) Equal variances -1.340 17.518 not assumed
.199
-118.389
156.2427
-536.6425
.197
-118.389
155.4766
-535.6780
118.9002
From the table we can see that, there are two P-values .To choose only one, we need to conduct another hypothesis testing. Step 1: H0: 1 = 2 (Equal variances assumed) H1: 1 2 (Equal variances not assumed) Step 2: Here the level of significance is, = .05 Step 3: F-test statistic will be used here. Step 4: Decision rule: If p-value < - value , H0 will be rejected If p-value > - value, H0 will be accepted Step 5: Decision (Comparing Variance): Since P-value (.630) > value (.05), H0 is accepted and H0 is rejected. That is, 1 = 2 i.e.; Equal variance assumed. Decision (Comparing Means): Again P-value (.199) > value (.05), H0 is accepted and H1is rejected. That is , 1 = 2 Comment: yes, there is no significant difference in the Mean Selling price of homes in Township 1 (Gulshan) and Township 2 (Uttara). Answer to the question.6
I. Step1: We state the Null Hypothesis (H0) and Alternate Hypothesis (H1). Ho : 12 = 22 H1: 12 22 Here, 12 = variability of the selling prices of homes that have a pool 22 = variability of the selling prices of homes that have not a pool Step 2: select the level of significance We selected the .02 level of significance Step 3: Determine the appropriate test statistic The appropriate test statistic follows F distribution. So here we use F-test statistic. Step 4: Formulate the decision rule: If p-value < - value, Ho will be rejected If p-value > - value, Ho will be accepted. Step 5: Select the sample, perform the calculations and make a decision
Std. Deviation
Sig.
df
t-test for Equality of Means Sig. (2Mean Std. Error tailed) Difference Difference
Lower Selling Equal Price in variances 6.627 .013 -2.197 31 TK. 000 assumed (Thousand) Equal variances -2.566 29.99 not assumed .033 -322.550 132.2738 -608.2345
Upper 27.1342
.013
-322.550
113.2198
-562.4724
-18.6280
Decision : Since P-value .013 < value .02 , Ho is rejected and H1 accepted. That is 21 2 2 Comment: Yes, there is a significant difference in the variability of the selling prices of homes that have a pool versus those that do not have a pool. II. Step 1: We state the Null Hypothesis (H0) and Alternate Hypothesis (H1). Ho :12 = 22 H1: 12 22 Here, 12 = variability of the selling prices of homes that have a pool 22 = variability of the selling prices of homes that have not a pool Step 2: select the level of significance We select the level of significance, = .02 Step 3: The appropriate test statistic follows F distribution. Here we use F-test statistic. Step 4: Formulate the decision rule: If p-value < - value, Ho will be rejected If p-value > - value, Ho will be accepted.
Garage Attached
Mean
Std. Deviation
No Yes
8 24
1949.26 3 2346.37 7
266.8853
94.3582
505.2096 103.1255
ANOVA Selling Price in TK. 000 (Thousand) Sum of Squares df Between 1349328. 4 Groups 692 Within Groups 5965909. 27 212 Total 7315237. 31 903
F 1.527
Sig. .223
Decision: Since P-value .050 > value .05 , Ho is not rejected . That is 1 = 2 = 3 = 4 = 5 Comment: No, at the 0.05 significance level, there is no significant difference in the mean selling price of the homes among the five Townships.
Let selling price be the dependent variable and size of the home the independent variable.
Then run the regression analysis in SPSS and we get, Model Summary(b) Std. Error Mode Adjusted of the l R R Square R Square Estimate 1 .368(a) .136 .107 459.0586 a Predictors: (Constant), Size of the Home in Square Feet b Dependent Variable: Selling Price in TK. 000 (Thousand)
a Dependent Variable: Selling Price in TK. 000 (Thousand) The regression equation, Y =609.995+.714 X Where, X = size of homes
Let selling price be the dependent variable and distance from the center of the city the independent variable,Then run the regression analysis in SPSS and we get,
Coefficients(a) Unstandardized Standardized Coefficients Coefficients Std. Model B Error Beta t Sig. 1 (Constant) 2852.551 168.981 16.881 .000 Distance -43.814 10.634 -.500 -4.120 .000 a Dependent Variable: Selling Price in TK. 000 (Thousand) The regression equation, Y = 2513.307+ (- 43.814) X Where, X = distance from the center of the city 95% Confidence Interval for B Lower Upper Bound Bound 2513.307 3191.794 -65.162 -22.466
95% confidence interval for the selling price of a home is (.254 -.1.174).
I.
Let selling price be the dependent variable and distance from the center of the city the independent variable,Then run the regression analysis in SPSS and we get,
II.
Coefficients(a) 95% Confidence Interval for B Lower Upper Bound Bound 2513.307 3191.794 -65.162 -22.466
III.
Unstandardized Standardized Coefficients Coefficients Std. Model B Error Beta t Sig. 1 (Constant) 2852.551 168.981 16.881 .000 Distance -43.814 10.634 -.500 -4.120 .000 a Dependent Variable: Selling Price in TK. 000 (Thousand) The regression equation, Y = 2852.551 + (- 43.814) X Where, X = distance from the center of the city
Comment: The result shows that the correlation co-efficient is r = -.308 which means the independent variables distance from the center of the city and selling price are negatively correlated. Again the p-value is .086 which is less than .05. Therefore we that the independent variables distance from the center of the city and selling price are negatively correlated. Answer to the question.8 I. Perform regression analysis in SPSS, we get the output as,
Regression Equation:
Y = a+ b1 X 1 + b2 X 2 + b3 X 3 + b4 X 4 + b5 X 5 + b6 X 6
= 905.087 + 93.746 X 1 +.387 X 2 + 206.820 X 3 + (-21.471) X 4 + 277.364 X 5 + 45.662 X 6 Where,
X 1 =Number of bed rooms X 2 =Area of home in square feet
X 3 = pool X 4 =Distance from the center of the city in miles
Interpretation: The intercept value of (a = 905.087) indicates that the regression equation intersects the Y-axis at 905.087 when independent variables X 1 , X 2 , X 3 , X 4 , X 5 & X 6 are zero. Size of home in square feet: Coefficient of area of home in square feet is 0.387, that means, if area of home is increased by one feet, the selling price of the homes will increase by $0.387considering all other factors constant. Pool : Coefficient of pool is 206.820 that means, if there is a pool then the selling price of the homes will increase by $206.820 , keeping all variables constant.
Distance from the center of the city: Coefficient of distance from the center of the city is (-21.471), that means, if distance from the city increased by one mile, the selling price of the homes will be decreased by $-21.471. Garage attached: Coefficient of garage attached is 277.364 that means, if a garage is attached then the selling price of the homes will increase by $277.364, keeping all variables constant. Number of bathrooms: Coefficient of Number of bathrooms is 45.662 that means, if a bathroom is increased then the selling price of the homes will increase by $45.662, keeping all variables constant. Number of bed rooms: Coefficient of Number of bed rooms is 93.746 that means, if a bedroom is increased then the selling price of the homes will increase by $93.746, keeping all variables constant II. Determination of the value of R 2 : Model Summary(b) Std. Error Mode Adjusted of the l R R Square R Square Estimate 1 .764(a) .583 .462 356.4560 a Predictors: (Constant), number of bathroom, Pool, Township, Size of the Home in Square Feet, Garage Attached, Distance, Number of Bedrooms b Dependent Variable: Selling Price in TK. 000 (Thousand) a Predictors: (Constant), Number of Bedrooms, Pool, Distance, Number of Bathrooms, Size of the Home in Square Feet, Garage Attached
Interpretation: 58.3% of the variation in the dependent variable Y (selling price) is explained by the variation in the independent variables i.e.; number of bathrooms, size of home in square feet, pool, distance from the center of the city, number of bedrooms and garage attached III. Multiple Standard error of the estimate: From the Model Summary table we get multiple standard error 332.2819 which is nothing but the dispersion about the regression line or the typical error when we use the regression equation to predict.
V. Global test on the set of independent variables (Testing the multiple regression model) Step-1: Ho : 1 = 2 = 3 = 4 = 5 = 6 =0 H1 : Not all the s are 0 Step-2: Here the level of significance is , = .05 Step-3: F-test statistic will be used here. Step-4: Decision rule: If p-value < - value, H0will be rejected If p-value > - value, H0 will be accepted Step 5 : Making calculations & taking decisions ANOVA(b) Mode l 1 Regressio Sum of Squares 4265777. Mean df Square 609396.765 4.796
F Sig. .002(a)
353 3049460. 24 127060.856 551 Total 7315237. 31 903 a Predictors: (Constant), number of bathroom, Pool, Township, Size of the Home in Square Feet, Garage Attached, Distance, Number of Bedrooms b Dependent Variable: Selling Price in TK. 000 (Thousand) Comment: Since p-value (.000) < - value (.05), Ho is rejected and H1is accepted. That is at least one variable has significant effect. This means that the regression model is valid; the independent variables have enough capability to estimate the selling price of the homes. VI. Test of hypothesis on each of the independent variables (Testing the individual regression coefficient) Step-1: Ho: 1 = 0, 2 = 0, 3 = 0, 4 = 0, 5 = 0, 6 = 0 H1 : 1 0, 2 0, 3 0, 4 0, 5 0, 6 0 Step-2: Here the level of significance is , = .05 Step-3: t-test statistic will be used here. Step-4: Decision rule: If p-value < - value, Ho will be rejected If p-value > - value, Ho will be accepted. Step 5 : Making calculations & taking decisions
n Residual
Decision:
Number of bedrooms: The p-value (.0127) <-value (.05), so, Ho is rejected. That is 1 0 The number of bedrooms is a good estimator; it has enough capability to estimate the selling price of the homes. Size of homes in square feet: The p-value (.002) > -value (.05), so, Ho is not rejected. That is 2 = 0 i.e; the size of the home in square feet is not a good estimator, it has not enough capability to estimate the selling price of the homes. Pool: The p-value (.765) (less or =-value (.05), so, Ho is rejected. That is, 3 0.Pool is a good estimator; it has enough capability to estimate the selling price of the homes. Distance from the center of the city: The p-value (.111) < -value (.05), so, Ho is rejected. That is, 4 0 .Distance from the center of the city is a good estimator, it has enough capability to estimate the selling price of the homes. Garage attached: The p-value (.466) < -value (.05), So, Ho is rejected. That is 5 0. The size of the home in square feet is a good estimator; it has enough capability to estimate the selling price of the homes. Number of bathrooms: The p-value (.989) >-value (.05), so, Ho is not rejected. That is. 6 =0 The size of the home in square feet is not a good estimator; it has not enough capability to estimate the selling price of the homes. Yes, we can delete two independent variables from the analysis as they are not good estimator of the selling price of homes. The independent variable is Size of homes in square feet and, Number of bathrooms VII. For the new multiple regression equation Coefficients(a) Unstandardized Standardized 95% Confidence Coefficients Coefficients Interval for B Std. Lower Upper Model B Error Beta t Sig. Bound Bound 1 (Constant) 1568.97 239.781 7.002 .000 1246.718 2251.155 Number of 102.79 18.659 .302 3.700 .000 57.134 188.463 Bedrooms Pool 263.93 55.862 .207 2.725 .008 74.618 472.168 Distance -21.87 8.236 -.233 .024 -44.409 -3.245 2.128
Garage 175.153 109.901 .155 2.128 .039 14.045 Attached a Dependent Variable: Selling Price in TK. 000 (Thousand) The new multiple Regression equation: Y = a+ b1 X 1 + b2 X 2 + b3 X 3 + b4 X 4 = 1568.97 + 102.79 X 1 + 263.33 X 2 + (-21.87) X 3 + 175.153 X 4 Where, X 1 =Number of bed rooms
X 2 = pool
X 3 = Distance from the center of the city X 4 =Garage attached
496.201
Interpretation: Number of bedrooms: Co-efficient of number of bedrooms is 102.709 which means that if the number of bedrooms is increased by 1 unit, the selling price of the homes will increase by $102.709, considering all other variables constant. Pool: Co-efficient of number of pool is 263.93which means that if there is a pool the selling price of the homes will increase by $263.93considering all other variables constant. Distance from the center of the city: Coefficient of distance from the center of the city is. (-21.87), that means, if distance from the city increased by one mile, the selling price of the homes will decrease by $ -21.872 Garage attached: Co-efficient of number of garage is 175.15which means that if there is a garage attached, the selling price of the homes will increase by 175.15, considering all other variables constant.