Regression Models: a) The owner has an 82-year-old building with 5 apartments but no parking spots. The lot is 7500 square feet and the gross building area is 9542 square feet. What sales price is predicted by MODEL I ? b) State why you know that all three models are significant for predicting the sales price. Since this is the case, why would a statistician prefer MODEL III to MODEL II ? c) Fill the missing numbers in the analysis-of-variance table for MODEL III. d) From MODEL II to MODEL III the proportion of explained variation in sales price reduces from 98% to 97.7%. Give precisely the reason you know that this is not a significant reduction in R2. e) Use MODEL III to answer this part. On the average, what does an extra apartment add to the sales price? Give a 95% confidence interval for the marginal contribution of the 'apts' variable.
1. The owner of an apartment building in Eurelia believes that her property tax bill is too high because of an overassessment of the property value by the city tax assessor. The owner has hired an independent real-estate appraiser to investigate the appropriateness of the city assessment. The appraiser used regression analysis