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Statistics Homework - Assignment Example

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The paper “Statistics homework” focuses on multiple regression, which usually has one variable to be forecast (dependent variable) and several other predictor variables (also known as explanatory variables). As an example the author considers prediction of sales…
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Download file to see previous pages When it comes to making forecasts using multiple regression, we must consider not only whether each independent variable value is reasonable by itself, but also whether the chosen combination of predictor values is reasonable.
From the multiple regression, it is possible to compare the slopes of two or more regression lines and test whether the slopes and intercepts are significantly different". The null hypothesis could read that the slopes for the two groups are not significantly different. We compare the p-value with the If p-value< we reject the null hypothesis and conclude that conclude that the slopes for the two groups are different.
From the figure below, R-squared value is 0.09232 implying that only approximately 9.232% of variation in price is explained by carA. The coefficient of carA on the other hand is -28463, this shows that the price of cars with no garage is much more, those with garage are -28463 cheaper.
From the figure below, R-squared value is 0.01968 implying that only approximately 1.968% of variation in price is explained by carA. The coefficient of carA on the other hand is -14845, this shows that the price of cars with one garage is much more, those with more than one garage are -14845 cheaper.
From the figure below, R-squared value is 0.1549 implying that only approximately 1.968% of variation in price is explained by carA and carB. ...Download file to see next pagesRead More
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