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1.
The coefficient of determination (R
2
) for the regression of the full model is
0.596504894
.
2.
The proportion of variation in the rent explained by its linear regression on the
explanatory variables is
0.575193533
when we adjust for the degrees of
freedom.
3.
In order to explain the explanatory power of the full model the appropriate
hypothesis test is the
(a) Overall Ftest
4.
The degrees of freedom associated with the test statistic in part 3 is (are)
(d) 15
and 284
.
5.
The value of the test statistic in part 3 is
27.98999498
corresponding pvalue
given by
2.372E47 = 2.372e47
.
6.
At 5% level, based on the results of the test discussed in parts 3. to 5. we can
conclude that the model estimated for explaining rent
(a) has sufficient
explanatory power,
.
7.
At 5% level, based on the full regression model, the appropriate test for
evaluating the positive effect of the average size of bedrooms on rent of an
apartment is a (an)
(b) Individual ttest
.
8.
The degrees of freedom associated with the test statistic in part 7 is
(b) 284
.
9.
In the full model, the value of the commonly used test statistic and the pvalue for
testing whether the average size of a bedroom has any impact on the rent of the
apartment are
7.721646456
and
1.9754E13 = 1.9754e13
, respectively.
10. At 5% level, based on the results of the test discussed in parts 7. to 9. we can
conclude that the average bedroom size
o
(a) has no effect on rent
o
(b) has no positive effect on rent
o
(c) has no negative effect on rent
o
(d) has a positive effect on rent
o
(e) has a negative effect on rent
o
(f) has some effect on rent
11. Ignoring the result of the test of significance in parts 7. to 10., based on the full
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 Spring '08
 Petry

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