Zykia Williams

UNCP

Quantitative Methods

Exam 1

Question 4 Explanation File

Part A

Beds: The estimated coefficient for Beds is 225.80998. This indicates that, holding Baths and

Sqft constant, a one-unit increase in the number of Beds is associated with an increase of

$225.80998 in monthly rent.

Baths: The estimated coefficient for Baths is 89.26613. This suggests that, holding Beds and Sqft

constant, a one-unit increase in the number of Baths is associated with an increase of $89.26613

in monthly rent.

Sqft: The estimated coefficient for Sqft is 0.20957. This indicates that, holding Beds and Baths

constant, a one-unit increase in Sqft is associated with an increase of $0.20957 in monthly rent.

The intercept is 300.41160. This means that the standard rent before incorporating the three

predictor variables above is $300.41160

From the output, we can see that the p-value for Beds is 0.000634, the p-value for Baths is

0.119466, and the p-value for Sqft is 0.027582. The p-values for beds and Sqft are less than 0.05

meaning these two variables are statistically significant. The p-value for baths, however, implies

statistical insignificance.
Part B

Beds: The estimated coefficient for Beds is 324.23772. This indicates that a one-unit increase in

the number of Beds is associated with an increase of $324.23772 in monthly rent.

Baths: The estimated coefficient for Baths is 34.32566. This suggests that a one-unit increase in

the number of Baths is associated with an increase of $34.32566in monthly rent.

Sqft: The estimated coefficient for Sqft is 10.4253. This indicates that a one-unit increase in Sqft

is associated with an increase of $1.04253 in monthly rent.

Beds:Sqft: The estimated coefficient for Sqft is -0.16784. This indicates that a one-unit increase

in Beds:Sqft is associated with a decline of $0.16784 in monthly rent.

From the output, we can see that the p-value for Beds is 0.000000293, the p-value for Baths is

0.453, the p-value for Sqft is 0.00000229, and the p-value for Beds:Sqft is 0.0000226. The p-

values for beds, Sqft, and Beds:Sqft are less than 0.05 meaning these three variables are

statistically significant. The p-value for baths, however, implies statistical insignificance.

Part C

Beds: The estimated coefficient for Beds is 0.0262. This indicates that, holding Baths and Sqft

constant, a one-unit increase in the number of Beds is associated with an increase of $0.0262 in

monthly rent.

Baths: The estimated coefficient for Baths is 0.008313. This suggests that, holding Beds and Sqft

constant, a one-unit increase in the number of Baths is associated with an increase of $0.008313

in monthly rent.
Sqft: The estimated coefficient for Sqft is 0.00006448. This indicates that, holding Beds and

Baths constant, a one-unit increase in Sqft is associated with an increase of $0.00006448 in

monthly rent.

From the output, we can see that the p-value for Beds is 0.0000205, the p-value for Baths is

0.0602, and the p-value for Sqft is 0.3622. The p-values for beds is less than 0.05 meaning the

variable is statistically significant. The p-value for baths and SqFt, however, imply statistical

insignificance.

Part D

The predicted value for the monthly rent is 1458.508

Part E

The predicted value for the monthly rent is 1492.834. This implies that as the number of baths

increase, the monthly rent also increases.