Q6 part 2

Brock University **We aren't endorsed by this school
Aug 8, 2023
Uploaded by PresidentEchidnaPerson1125 on coursehero.com
W 00~ O U B W N - A B C D E G H I J K SUMMARY OUTPUT Regression Statistics Multiple R 0.843419937 R Square 0.71135719 Adjusted R Square 0.698807502 Standard Error 197.4291643 Observations 25 ANOVA df SS MS F gnificance F Regression 1 2209416 2209416 56.68325963 1.2E-07 Residual 23 896500.3 38978.27 Total 24 3105916 Coefficients andard Err t Stat P-value Lower 95%Upper 95%ower 95.0% pper 95.0% Intercept 1187.312965 164.4746 7.218822 2.39E-07 847.0713 1527.555 847.0713 1527.555 Size_(sq._ft) 1.059182176 0.140684 7.528829 1.20E-07 0.768156 1.350208 0.768156 1.350208 C) The t stat as shown in output is 7.529 We aren't told to make a hypothesis but since we have to make a conclusion at the end we can quickly also make one. HO: R1=0 (this means the slope=0, meaning no relationship) H1: R1#0 (this means the slope ISNT 0O, there can be a linear relationship) D) The P-value as shown in output is 1.1957964773231E-07 In simplied terms this number is 0.0000001 .... so its clearly lower then our alpha at 0.05. E) As mentioned above, our p-value is MUCH lower then our significence level of 0.05. This means that we reject the null hypothesis and conclude the slope is NOT zero, there is a relationship between rent and size!
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