Solved

It Is Desired to Build a Regression Model to Predict y=\mathrm { y } =

Question 20

Multiple Choice

It is desired to build a regression model to predict y=\mathrm { y } = the sales price of a single family home, based. on the x1=x _ { 1 } = size of the house and x2=x _ { 2 } = the neighborhood the home is located in. The goal is to compare the prices of homes that are located in two different neighborhoods. The following complete 2 nd-order model is proposed: E(y) =β0+β1x1+β2x12+β3x2+β4x1x2+β5x12x2\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 1 } ^ { 2 } + \beta _ { 3 } \mathrm { x } _ { 2 } + \beta _ { 4 } \mathrm { x } _ { 1 } \mathrm { x } _ { 2 } + \beta _ { 5 } \mathrm { x } _ { 1 } ^ { 2 } \mathrm { x } _ { 2 } What hypothesis should be tested to determine if the quadratic terms are necessary to predict the sales price of a home?


A) H0:β1=β3=β4=0\mathrm { H } _ { 0 } : \beta _ { 1 } = \beta _ { 3 } = \beta _ { 4 } = 0
B) H0:β2=β5=0\mathrm { H } _ { 0 } : \beta _ { 2 } = \beta _ { 5 } = 0
C) H0:β1=β2=β3=0\mathrm { H } _ { 0 } : \beta _ { 1 } = \beta _ { 2 } = \beta _ { 3 } = 0
D) H0:β1=β2=β3=β4=β5=0\mathrm { H } _ { 0 } : \beta _ { 1 } = \beta _ { 2 } = \beta _ { 3 } = \beta _ { 4 } = \beta _ { 5 } = 0

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents