25 The test statistic for testing the significance of the Li

25. The test statistic for testing the significance of the Living Area variable is ________.

a) 3.135

b) 3.857

c) 4.690

d) 5.028

SUMMARY OUTPUT Rearession Statistics MultipleR R Square Adjusted R Square Standard Error Observations 0.8486 36,009.01 ANOVA Significance F 0.0022 MS Regression Residual Total 36,709,265,905.70 14 50,972,400,000.00 Coefficients Standard Error t Stat P- Lower 95% Upper 95% Intercept Age Living Area Bedrooms 108,597.3721 580.6870 86.8282 31,261.9127 101,922.3333 2,092.4981 27.6994 11,006.8696 value 0.3095 0.7865 0.0095 0.0161

Solution

The test statistic for testing the significance of the Living Area variable is t = (86.8282)/(27.6994) = 3.135