Homework SourseThe The Rent in the sample range from 15500 to 32000 and the
The The Rent in the sample range from $15,500 to $32,000 and the office sizes in the sample range from 740 to 1,260 s Square feet. The output from the Excel regression is provided below. Answer the follow questions (1) and (2).
1. Write out the regression equation (with the calculated coefficient estimates).
2. Interpret the meaning of b0 and b1 in this problem.
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.82049999
R Square
0.67322024
Adjusted R Square
0.66195197
Standard Error
3042.5153
Observations
31
ANOVA
df
SS
MS
F
Significance F
Regression
1
553051465.6
5.53E+08
59.7447854
1.59606E-08
Residual
29
268450081.2
9256899
Total
30
821501546.8
Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Intercept
-2010.5068
3349.105517
-0.7777
0.44304505
-9454.286633
4245.093122
Size(Sq Ft)
25.0017135
3.193582115
7.729475
1.5961E-08
18.15310465
31.21632226
| SUMMARY OUTPUT | ||||||
| Regression Statistics | ||||||
| Multiple R | 0.82049999 | |||||
| R Square | 0.67322024 | |||||
| Adjusted R Square | 0.66195197 | |||||
| Standard Error | 3042.5153 | |||||
| Observations | 31 | |||||
| ANOVA | ||||||
| df | SS | MS | F | Significance F | ||
| Regression | 1 | 553051465.6 | 5.53E+08 | 59.7447854 | 1.59606E-08 | |
| Residual | 29 | 268450081.2 | 9256899 | |||
| Total | 30 | 821501546.8 | ||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |
| Intercept | -2010.5068 | 3349.105517 | -0.7777 | 0.44304505 | -9454.286633 | 4245.093122 |
| Size(Sq Ft) | 25.0017135 | 3.193582115 | 7.729475 | 1.5961E-08 | 18.15310465 | 31.21632226 |
Solution
The The Rent in the sample range from $15,500 to $32,000 and the office sizes in the sample range from 740 to 1,260 Square feet. The output from the Excel regression is provided below. Answer the follow questions (1) and (2).
Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Intercept
-2010.5068
3349.105517
-0.7777
0.44304505
-9454.286633
4245.093122
Size(Sq Ft)
25.0017135
3.193582115
7.729475
1.5961E-08
18.15310465
31.21632226
Regression equation
Rent = 25.0017135*size - 2010.5068
2. Interpret the meaning of b0 and b1 in this problem.
b0 = -2010.5068
when size of the place is 0, the rent is -2010.5068.
But in this problem, range of the data , is 740 to 1,260 Square feet, the interpretation of b0 is meaningless.
b1 = 25.0017135
when there is one square feet increase in size, there is increase of rent by $25.0017135
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |
| Intercept | -2010.5068 | 3349.105517 | -0.7777 | 0.44304505 | -9454.286633 | 4245.093122 |
| Size(Sq Ft) | 25.0017135 | 3.193582115 | 7.729475 | 1.5961E-08 | 18.15310465 | 31.21632226 |
