[Solution] The following results are from data that were collected from the appraisal of houses based on a number of the houses’ characteristics: the dependent
Question: The following results are from data that were collected from the appraisal of houses based on a number of the houses’ characteristics: the dependent variable is APPRAISAL VALUE, the variable Land measures the amount of land the lot is, HOUSE SIZE measures the size of the house, AGE measures how old the house is, ROOMS measures the number of bedrooms the house has, BATHS measures the number of bathrooms a house has, and GARAGE measures weather it is a 1 or 2 car garage.
Since the 3 variables ROOMS, BATHS, and GARAGE are each not significant at the 10% level of significance individually, in order to test to see if as a group they are significant (versus the alternative that they are not significant and that house values are really determined primarily by LAND, HOUSE SIZE, and AGE) the 3 variables (ROOMS, BATHS, and GARAGE) are excluded and another regression is run. The
results are as follows:
- At the 10% level of significance, test whether as a group ROOMS, BATHS, and GARAGE are significant. Be sure to state the null and alternative hypothesis for this hypothesis test.
Deliverable: Word Document 