# Statistical Variations

Statistical Variations 150 150 Affordable Capstone Projects Written from Scratch

A sample of 30 recently sold single-family houses in a small city is selected. Develop a model to predict the selling price (in thousands of dollars), using the assessed value (in thousands of dollars) as well as time (in months since reassessment). The houses in the city had been reassessed at full value one year prior to the study. The results are stored in House1.xls.

a. State the multiple regression equation.

b. Interpret the meaning of the slopes in this equation.

c. Predict the selling price for a house that has an assessed value of \$170,000 and was sold 12 months after reassessment.

d. Perform a residual analysis on your results and deter-mine whether the regression assumptions are valid.

e. Determine whether there is a significant relationship be-tween selling price and the two independent variables (assessed value and time period) at the 0.05 level of significance.

f. Determine the p-value in (e) and interpret its meaning.

g. Interpret the meaning of the coefficient of multiple determination in this problem.