A real estate developer wishes to study the relationship between the size of hom
ID: 3225166 • Letter: A
Question
A real estate developer wishes to study the relationship between the size of home a client will purchase (in square feet) and other variables. Possible independent variables include the family income, family size, whether there is a senior adult parent living with the family (1 for yes, 0 for no), and the total years of education beyond high school for the husband and wife. The sample information is reported below.
a.
Develop an appropriate multiple regression equation using stepwise method. (Use excel data analysis and enter number of family members first, then their income and delete any insignificant variables. Round P-value to 3 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Round the Constant, Income values to 1 decimal place and T-value, R2, R2(adj) to 2 decimal places.)
b.
A real estate developer wishes to study the relationship between the size of home a client will purchase (in square feet) and other variables. Possible independent variables include the family income, family size, whether there is a senior adult parent living with the family (1 for yes, 0 for no), and the total years of education beyond high school for the husband and wife. The sample information is reported below.
Explanation / Answer
Regression output for family members
Regression output for Income levels
the final table would look like
A.a)
A.b) family size nd income levels should be considered as independent variables in the final model
SUMMARY OUTPUT Regression Statistics Multiple R 0.869362852 R Square 0.755791769 Adjusted R Square 0.72526574 Standard Error 369.9522392 Observations 10 ANOVA df SS MS F Significance F Regression 1 3388622.326 3388622.326 24.75892859 0.001085138 Residual 8 1094917.274 136864.6593 Total 9 4483539.6 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 1339.870968 395.8940639 3.384417929 0.009578781 426.9376193 2252.804316 426.9376193 2252.804316 Family Size 522.7580645 105.0593762 4.975834462 0.001085138 280.4907086 765.0254204 280.4907086 765.0254204Related Questions
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