The information here represents the relationship between the selling price (Y, in $1,000) of a home, the square footage of the home (X1), and the number of rooms in the home (X2).
The data represents 60 homes sold in a particular area of East Lansing, Michigan and was analyzed using multiple linear regression and simple regression for each independent variable.
(A) Use the information related to the multiple regression model to determine whether each of the regression coefficients are statistically different from 0 at a 5% significance level. Summarize your findings.
(B) Test at the 5% significance level the relationship between Y and X in each of the simple linear regression models. How does this compare to your answer in Part A? Explain.
(C) Is there evidence of multicollinearity in this situation? Explain why or why not.