Question: The accompanying Excel output contains data, descriptive statistics, and a regression output, relating the selling price of houses to the size of the house in square feet and the age of the house in years.

a. Write out the regression equation, with specific intercept and slope estimates.

b. For one row of data, use the independent variable values to predict the value of the dependent variable. Indicate which row of data you are using. For this row, compute the “residual”. What summary output in regression is related to the “residual”, and what is its value in this regression?

c. For each independent variable, interpret the numerical value of the slope.

d. Evaluate the reliability, or “statistical significance”, of each of the two slope estimates. In so doing, indicate the “null value” of the slope against which you are testing.

e. Use the R-square and the standard error of the estimate to evaluate the overall reliability of the regression.