The CEO of the company thinks that this statistical analysis strongly suggests that increasing the number of baths by 1 will increase, on average, the house sale price by at least 3 thousands of dollars. To assess the plausibility of his claim, a hypothesis testing procedure was performed. (i) Write down the hypotheses, (ii) carry out the test to assess the CEO's claim at level a = .1, and (iii) state your conclusion in a sentence form.
The CEO of the company thinks that this statistical analysis strongly suggests that increasing the number of baths by 1 will increase, on average, the house sale price by at least 3 thousands of dollars. To assess the plausibility of his claim, a hypothesis testing procedure was performed. (i) Write down the hypotheses, (ii) carry out the test to assess the CEO's claim at level a = .1, and (iii) state your conclusion in a sentence form.
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.CR: Chapter 1 Review
Problem 86CR
Related questions
Question
NOT GRADED ASSIGNMENT
Transcribed Image Text:A large house building company is interested in the relation between sale prices of houses y (in thousands of
dollars) to taxes x1 (in thousands of dollars), number of baths x2, and age of home x8 (in years). To this end, the
measurements of these four variables were taken from a sample of properties and a linear model was run. A
fragment of the R output of the regression is shown below.
Coefficients:
Estimate Std. Error t value Pr(>|t|)
Secollant
x1
(Intercept)
7.4226
0.1964
-4.5571
0.5429
4.1630 1.783 0.0863.
0.3703 0.530 0.6004
2.5464 -1.790 0.0852
0.7188 0.755 0.4568
x2
x8
Signif. codes: 0*** 0.001 ** 0.01 0.05. 0.11
Jade alun-Residual standard error: 3.323 on 26 degrees of freedom
Multiple R-squared: 0.1597, Adjusted R-squared: 0.06276
donda alowe F-statistic: 1.647 on 3 and 26 DF, p-value: 0.2028
Transcribed Image Text:The CEO of the company thinks that this statistical analysis strongly suggests that increasing the number of
baths by 1 will increase, on average, the house sale price by at least 3 thousands of dollars. To assess the
plausibility of his claim, a hypothesis testing procedure was performed. (i) Write down the hypotheses, (ii)
carry out the test to assess the CEO's claim at level a = .1, and (iii) state your conclusion in a sentence form.
to 2000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps with 9 images
Recommended textbooks for you
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage