Homework SourseA real estate developer wishes to study the relationship bet
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.)
| Family | Square Feet | Income (000s) | Family Size | Senior Parent | Education | |||||
| 1 | 2,240 | 60.8 | 2 | 0 | 4 | |||||
| 2 | 2,380 | 68.4 | 2 | 1 | 6 | |||||
| 3 | 3,640 | 104.5 | 3 | 0 | 7 | |||||
| 4 | 3,360 | 89.3 | 4 | 1 | 0 | |||||
| 5 | 3,080 | 72.2 | 4 | 0 | 2 | |||||
| 6 | 2,940 | 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
The regression equation is
SF = 713 + 12.1 income + 372 family size
Predictor Coef SE Coef T P
Constant 712.7 363.3 1.96 0.091
income 12.147 5.383 2.26 0.059
family size 372.0 103.7 3.59 0.009
S = 273.428 R-Sq = 89.8% R-Sq(adj) = 86.9%
Analysis of Variance
Source DF SS MS F P
Regression 2 4619699 2309849 30.90 0.000
Residual Error 7 523341 74763
Total 9 5143040
