Question

An analysis was done to predict log(price) of homes in Gainesville during Spring 2019 based on number of beds and baths along with an indicator variable for NorthWest. The indicator variable was 1 if in the Northwest of Gainesville and 0 otherwise. This shows the regression output from JMP. The r-square value is 0.625955. The r-square adjusted is 0.618. The number of observations is 100. The F test statistic is 81.1634 with a p-value less than 0.0001. The p-value for the intercept is 0.0002. The p-value for beds_baths is less than 0.0001. The p-value for North West is 0.0490. How would you interpret the slope coefficient for NorthWest?

Answer 1

Answer:

Since coefficient for northwest is - 66.21,

The price of home in north west are 66.21 dollars, lower than elsewhere in the town, for the given number of beds and baths.