® STAT2401 Analysis of Experiments — Test 1 (Sample) Solutions Real estate investors, homebuyers, (Mvaiue) of ° Appraised (or market) value Freed eng 8 basis for predicting sale price (SPrice), tee on sale prices (SPrice) and total appraised values (MValue) of 76 residential FroPerties sold in 2008 in an upscale Tampe, Florida, neighborhood named Tampa Palins ie available. ‘We are interested in relating these two Variables using the regression model: SPrice = Ay + AiMValue +¢ where € is normally distributed with mean 0 and variance ¢?. ‘We have the following R output, Call: im(formula = SPrice ~ MValue) Residual: Min 1Q Median 3Q 0 Max 789-69 -15.26 0.82 14.45 48.81 Coefficients: Estimate Std. Error t value Pr(>/t|) (Intercept) 1.1603 4.3773 0.2651 0.7917 MValue = 1.4974 0.0122 123.1027 <2.20-16 +a 0.01 **? 0.05.7 O19 9 4 mn 74 degrees of freedon 0.9951, Adjusted R-squared: 0.9951 Frstatistic: 15154.2862 on 1 and 74 DF, p-value: <2.2e-16 Answer the following questions: Question 1. The estimate of fo is le me (a) 1.1603, ¥ jn derrceph Esk (b) 0.0122, (c) 1.4974, or (@) 4.3773. [1 Mark] te [1 Mark] juestion 2. ‘The estimate of A; is ie (a) 0.0122, Nrolee Esko (b) 4.3773, (c) 1.1603, or (d) 1.4974. ¥Question 3. [1 Mark} ‘The fitted model is given by (a) SPrice = 1.4974 + 1.1603 x Mvalue, (b) SPrice = 1.1603 + 0.0122 x Mvalue, (c) SPrice = 1.1603 + 1.4974 x Hvalue, or V Pa + Pp K Maw lee (@) SPrice = 4.9773 + 1.4974 x Mvalue. jakapt Eaeale + [pee Eg birecbe 70 Melon Question 4. [1 Mark] The estimate of Var(A1) is (a) 1.16037=1.3463, ae (b) 1.4974?=2.2422, (sta greet pu) (c) 4.37737=19. 1608, or (d) 0.0122?=0.0001. / Question 5. [1 Mark] ‘The estimate of Vo? is (a) 22.5837, V i -) (b) 0.4976, (Reside Std eth (c) 0.9961, or (d) 15154.2862. Question 6. [2 Mark] The estimate of Var(Ao) is (a) 1.49747=2.2422, _ (b) 0.01222=0.0001, bi eee at p>) (c) 1.1603=1.3463, or (4) 4.3773?=19.1608. /juestion 7. S [1 Mark] ‘The estimate of SE(Ao) is (a) 4.3773, ¥ (std eer ot po) (b) 0.0122, (c) 0.01222=0.0001, or (d) 4.37737=19, 1608. Question 8. [1 Mark] ‘The estimate of SE(A1) is (a) 4.87737=19. 1608, (ses Rel of é:) (b) 0.01227=0.0001, (c) 4.3773, or (d) 0.0122. ¥ Question 9. [1 Mark] ‘The t-statistic for the test Ho : (a) 123.1027, ele (b) 0.0122, bo re - 5 (c) 4.3773, or t at (d) 0.2654. v fo = 0-vs Hh : fo #0 is given by Question 10. [1 Mark] cee etatite forthe test Ho : fh =0 ve Bi #08 given OF (a) 0.2651, \ (b) 0.0122, alee fr PL, (c) 4.3773, o al (d) 123.1027. ¥© Question 11. [1 Mark| ‘The p-value for the test Ho {(j)= 0 vs Hi : Ay #0 is given by (a) 123.1027, (b) 0.7917, e dow B, (©) 0.2661, or (a) <2.20-16. ¥ Question 12. {1 Mark] The p-value for the test Ho (6) = 0 vs Hy : Bo #0 is given by (@) 4.3773, (b) 128.1027, (©) <2.26-16, or Pelee Pe fo (d) 0.7917. ¥ Question 13. [1 Mark] For the test Hy : By = 0 vs Hy (GF O, at the (cc =)5% significance level, we (a) do not reject Ho because the p-value > 0.025 = a/2, (b) reject Ho because the p-value < 0.025 = a/2, (©) do not reject Ho because the p-value > 0.05 = a, or ¥ oO (a) reject Ho because the p-value < 0.05 = a. Pelee of Po > Oo: wlt Question 14. {1 Mark] For the test Ho : fi = 0 ve Hi G4 0, at the (cx =)5% significance level, we (a) do not reject Ho because the p-value > 0.025 = a/2, b) reject Ho because the p-value < 0.025 = a/2, “of (b) reject Ho p A Pi <0 (c) do not reject Ho because the p-value > 0.05 = a, or (a) reject Ho because the p-value < 0.05 =a. / eL.re leQuestion 15. [1 Mark] For the linear regression, we are interested to see whether there is linear relationship between the variables Mvalue and SPrice, so we are interested in the test: x 2 (a) Ho: Ai =0 vs: i #0, 0 oo 1 ver? VW. (6) Ho: Ay = Bo ve Hi : i # Boy po Merle: (©) Ho: By = 0 vs Hi : fo #0, oF Pr (@) Ho:0? =0 vei :07 £0. Note that qt (1-0.05/2,74)=1.9925 Question 16. [1 Mark] The 95% CI for A; is given by (a) (1.4974 — 1.9925 x 0.0122, 1.4974 + 1.9925 x 0.0122) = (1.4731, 1.5217), v (b) (1.4974 — 1.9925 x 4.3773, 1.4974 + 1.9925 x 4.3773) = (-7.2244, 10.2192), (c) (1.1603 — 1.9925 x 0.0122, 1.1603 + 1.9925 x 0.0122) = (1.1360, 1.1846), or (d) (1.1603 — 1.9925 x 4.3773, 1.1603 + 1.9925 x 4.3773) = (-7.5615, 9.8821). (B -4t x sri ee Or, p, +t nstl ERR of b:) Question 17. [1 Mark] The 95% CI for Ao is given by (a) (1.4974 — 1.9925 x 4.3773, 1.4974 + 1.9925 x 4.3773) = (-7.2244, 10.2192), (b) (1.1603 — 1.9925 x 0.0122, 1.1603 + 1.9925 x 0.0122) = (1.1360, 1.1846), (c) (1.1603 — 1.9925 x 4.3773, 1.1603 + 1.9925 x 4.3773) = (-7.5615, 9.8821), or v (d) (1.4974 — 1.9925 x 0.0122, 1.4974 + 1.9925 x 0.0122) = (1.4781, 1.5217). @ —4t xs emdpo, fpotat rstd RL ot Fo) Now, we donote (i,---)n) be the fitted values, (y1,..-,tn) be the observed values of SPrice, (c1,.--sn) be the observed values of MValue. auestion(i8,) [1 Mark] ‘The residuals are given by (0) (€1y-++s€n) = (U1 X ise -9Yn X Gn)s (6) (€4y.--s€n) = (1 +B -1tm + Ba)s : “A (©) (€ty-+s€n) = (s/ar- ++ Yn/n)s OF Av if? Cn -4n) (8) (Cy ees) = (1 = Bist — Ta) V© Question 19. [1 Mark) ‘We call >i. ¢? Residual Sum of Squares and it has the value (a) 22.6837 x 76 = 1716.3612, (b) 22.6837 x 74 = 1671. 1938, geridurl gta k pex deg ob Fea (c) 22.8837? x 76 = 38761.7864, or (a) 22.5837? x 74 = 37741.7394, / Here we also take y= 7 7, yi and we have Z = } 7}, x; = 290.0789. Question 20. {1 Mark] ‘The sum of squares 77} ; (yi — 9)? is called (a) Regression Sum of Squares, () Total Sum of Squares, 7 TSS (©) Residual Sum of Squares, or (@) Residual Standard Error. Question 21. [1 Mark] Let r be the sample correlation coefficient between MValue and SPrice, so |r| is given by (a) 0.9951, (b) 0.4976, = 0-995] (c) ¥0.9951 = 0.9975, or ¥ Kor (d) V0.4976 = 0.7054. fi & oO ‘OGe| Question 22. [) Mark) ‘The F-statistic at the bottom of the table is calculated for the test o Mreol (a) Ho: Bo — fy =0 vs Hi : fo - A #0, s l on (b) Ho: Ay =0vs Th: fi £0, 7 F ene =o ve HB (6) Ho: fo = 0 vs Hy : fo #0, or So Hel?! (4). Ho : Bo = Bi = 0 vs Hs : A #0 or fi #0.© Question 23. [1 Mark} The termn BP SP (24 — 2)? 4+ SP (ve ~ fi)? in (a) Regression Sum of Squares, (b) Residual Standard Error, (©) Residual Sum of Squares, or (a) Total Sum of Squares. W ae Question 24. [1 Mark} The term 8? D7, (x; — 2)? is (a) Total Sum of Squares, (6) Residual Standard Error, ' Si of Ga (©) Residual Sum of Squares, or Regrenie ?nr~ (d) Regression Sum of Squares. / a E Question 25. EW Ger [1 Mark} The sample average of SPrice 7 is also given by £ aa pee = Po (a) 1.4974 x 290.0789 = 336.5785, Spe (b) 1.1603 + 290.0789 = 291.2392, pe (c) 1.4974 + 1.1603 x 290.0789 = 338.0759, or pe + Pix 29p-0789 (d) 1.1603 + 1.4974 x 290.0789 = 337.7388. 7 Question 26. [1 Mark] The R? is also given by oo Ae Rdipndo om A fant (YEH)? BE, en pk don ben ae net he ©) BES - @ BREE R=® Question 27. {1 Mark} ‘The correlation coefficient r between KValue and SPrice is given by brn ols Question 28. [1 Mark] The correlation coefficient r between MValue and SPrice, it is also true that (=) r=VR?, (b) 1? = VR, ae re () R=9?, ord Rk (@) =r. Question 29. [1 Mark] ‘Total Sum of Squares 7, (vi — 9)? is also given by () Baige, (bl) R?x Dha(w-9)*, (0) Rx DE (4-H), oF (Se @ Sag v eR {1 Mark] Question 30. a Regression Sum of Squares 3-7, (Gi ~ 9)” is also given by (a) Cie! iG y (b) Rx Sh (w-H), i ol ee Ce (-) =4-B” or (a) Rx DEW a