Question

The commercial division of a real estate firm is conducting a regression analysis of the relationship between , annual gross rents (in thousands of dollars), and , selling price (in thousands of dollars) for apartment buildings. Data were collected on several properties recently sold and the following computer output was obtained. ANOVA df SS MS F Significance F Regression 1 41587.1 Residual 7 Total 8 51984.8 Coefficients Standard Error t Stat P-value Intercept 20.000 3.2213 6.21 Annual Gross Rents 7.270 1.3627 5.29 a. How many apartment buildings were in the sample

Answer 1

The number of apartment buildings in the sample was 9.

Explanation:

The ANOVA table is as follows:

ANOVA

df SS MS F Significance F

Regression 1 41587.1 __ ___ ____

Residual 7 ___ __ ___ ____

Total 8 51984.8 __ ___ ____

The degrees of freedom of Total is, n - 1.

Compute the sample size as follows:

DF of total = n - 1

8 = n - 1

n = 9

Thus, the number of apartment buildings in the sample was 9.