Mat 540 Assignment 2
Group Assignment 1
According to the output, three variables (section, bed and pool) are insignificant because the p-value of them are larger than 0.05. The relationship between the selling price and variables should be:
Y= -49.59+4.04X1+32.97X2+11.09X3+29.15X4+22.52X5+12.92X6-25.66X7+1.59X8
X1=lot size
X2=number of bathrooms
X3= number of other rooms
X4= number of stories
X5 =number of fireplaces
X6 = car garages
X7 =whether or not the lot is fenced
X8= age
Q4: Based on the results of the estimation in step 1, answer the following questions:
a. How do you interpret the intercept, the coefficient of lot size, beds and other variables?
The intercept (-49.58856) is the expected mean value of Price Y when all variables X=0. And …show more content…
Based on the results how many factors would you consider in summarizing the information in the explanatory variables – why? What percentage of the total information in the explanatory variables is summarized in the factors that you have decided to retain?
Only 4 factors will be considered in summarizing the information in the variables because there are only 4 eigen value> 1, which means these 4 factors will do a god job. According to the estimates, 64.89% of the total information in the explanatory variables in the factors will be retained.
6. Based on the results of the estimation in step 3, answer the following questions:
a. How do you interpret the intercept, and the coefficient of the factors?
First, the P value for this model is less than .05 so this model is significant.
Then we can figure out the P value for each factor is significant, which means Factor 1, 2, 3 and 4 do have some effects on Price.
Price=110.70+48.5*F1+33.49*F2+57.20*F3-8.30*F4
It means every unit increased on factor1, the price of this house would be increase 48.5 units as well.
If the value of factor2 (section and age) increase one unit, the section of this house closer to uptown by one unit, the price of the house would be increased by 33.49
According to the output, three variables (section, bed and pool) are insignificant because the p-value of them are larger than 0.05. The relationship between the selling price and variables should be:
Y= -49.59+4.04X1+32.97X2+11.09X3+29.15X4+22.52X5+12.92X6-25.66X7+1.59X8
X1=lot size
X2=number of bathrooms
X3= number of other rooms
X4= number of stories
X5 =number of fireplaces
X6 = car garages
X7 =whether or not the lot is fenced
X8= age
Q4: Based on the results of the estimation in step 1, answer the following questions:
a. How do you interpret the intercept, the coefficient of lot size, beds and other variables?
The intercept (-49.58856) is the expected mean value of Price Y when all variables X=0. And …show more content…
Based on the results how many factors would you consider in summarizing the information in the explanatory variables – why? What percentage of the total information in the explanatory variables is summarized in the factors that you have decided to retain?
Only 4 factors will be considered in summarizing the information in the variables because there are only 4 eigen value> 1, which means these 4 factors will do a god job. According to the estimates, 64.89% of the total information in the explanatory variables in the factors will be retained.
6. Based on the results of the estimation in step 3, answer the following questions:
a. How do you interpret the intercept, and the coefficient of the factors?
First, the P value for this model is less than .05 so this model is significant.
Then we can figure out the P value for each factor is significant, which means Factor 1, 2, 3 and 4 do have some effects on Price.
Price=110.70+48.5*F1+33.49*F2+57.20*F3-8.30*F4
It means every unit increased on factor1, the price of this house would be increase 48.5 units as well.
If the value of factor2 (section and age) increase one unit, the section of this house closer to uptown by one unit, the price of the house would be increased by 33.49