Below gives the data concerning (1) the dependent variable Default which equals 1 if a customer defaults on their loan and 0 if they do not; (2) the independent variable Price of Home, which is the price of the home (in hundred tens) and (3) the independent variable First Purchase which equals 0 if the customer has owned a home before and 1 if this is their first home. Evaluate the significance of each independent variable in the model.
A) Intercept = −3.4592 significant, price of home = .70935 significant
B) Intercept = −3.492 not significant, first purchase of home = .70935 not significant
C) Price of home is significant p-value = .0201, first purchase is significant p-value = .0136
D) Price of home is significant p-value = .0136, first purchase is significant p-value = .201

Question

Below gives the data concerning (1) the dependent variable Default which equals 1 if a customer defaults on their loan and 0 if they do not; (2) the independent variable Price of Home, which is the price of the home (in hundred tens) and (3) the independent variable First Purchase which equals 0 if the customer has owned a home before and 1 if this is their first home. Evaluate the significance of each independent variable in the model. 
A) Intercept = −3.4592 significant, price of home = .70935 significant 
B) Intercept = −3.492 not significant, first purchase of home = .70935 not significant 
C) Price of home is significant p-value = .0201, first purchase is significant p-value = .0136 
D) Price of home is significant p-value = .0136, first purchase is significant p-value = .201

Quizplus · Accepted Answer

Because the p-value of each is less than .05, each independent variable is significant.

Below Gives the Data Concerning (1) the Dependent Variable Default