CET 3464 Lecture Notes - Lecture 3: Prope, Test Statistic
23 Jan 2021
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Document Summary
Given that a real estate agent used - linear ession to model the selling price of a prope- -sty in terms of the land of the property. segoession area. "the line al model is selling price = 33881 + 403 * land area. To edentity: the false statement. the correlation coefficient for the selling prosce and land area less than 1. Since the coefficient land area for unit ancrease en land area selling poice increases (positive) by on average. the 4. True. we need standard error to test for significance true. The assumption have been violated because with no area the price would be zero. 0. 0315 to find : the p-value of test to test for the hypo theses that the pooportions are the same . The test statistic is given by z= 0. 088 0. 0315 z = 2. 79. is the p-value p-value = op [ze 2. 79] p-value= 0. 005271.
