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Unformatted text preview: statistic and critical value, and conclude. 3. For subdivision B, test the hypothesis that an increase in size of one-square foot is associated with an increase in price of $45 against the alternative that it is not. Write the null and alternative hypotheses, determine the appropriate test-statistic and critical value, and conclude. ( Note: the estimated standard error of the estimated slope coefficient is 6.579). 4. How did I know that the estimated standard error of the estimated slope coefficient is 6.579 in #3? 5. What will each (1000-square foot) house cost if it is priced as the regressions say it should be? Show your work. 6. Which house should you buy if you are planning to add 1000 sq. feet to the house and then sell it? This addition will cost $33 per sq. foot. Explain your answer....
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- Spring '08
- Null hypothesis, 5%, $45, estimated standard error, $33