Homework SourseA local real estate developer wishes to study the relationsh
A local 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 contained in the file RealEstateChapter14.
Mr. Robert Bostick is a real estate broker who asked you to produce a model to predict the square footage a potential buyer would purchase. Based on the data in the file RealEstateChapter14, is the overall regression model significant if ? = 0.05?
Write a memorandum to Mr. Bostick explaining if the model is significant and if so, which variables make a difference in the size of home a client might purchase.
This work needs to be done in excel so I can see the formulations.
| Real Estate | |||||||||||
| Family | Square Feet | Income (000s) | Family Size | Senior Parent | Education | Square Feet | Size of home purchased | ||||
| 1 | 2,771 | 46.9 | 3 | 0 | 4 | Income (000s) | Family Income | ||||
| 2 | 2,380 | 68.4 | 2 | 1 | 6 | Family Size | Number of individuals in the immediate family | ||||
| 3 | 3,283 | 104.5 | 3 | 0 | 7 | Senior Parent | 1 if a senior parent lives in the household, 0 if not | ||||
| 4 | 3,119 | 94.1 | 3 | 1 | 0 | Education | Years of education after high school | ||||
| 5 | 3,217 | 50.6 | 3 | 0 | 2 | ||||||
| 6 | 2,595 | 114 | 3 | 1 | 10 | ||||||
| 7 | 4,480 | 125.4 | 6 | 0 | 6 | ||||||
| 8 | 2,520 | 83.6 | 3 | 0 | 8 | ||||||
| 9 | 4,200 | 133 | 5 | 0 | 2 | ||||||
| 10 | 2,800 | 95 | 3 | 0 | 6 |
Solution
Let y = size of home purchased
y = 1.617243056
