It Is Desired to Build a Regression Model to Predict $y =$

question 63

Multiple Choice

It is desired to build a regression model to predict $y =$ the sales price of a single family home, based on the neighborhood the home is located in. The goal is to compare the prices of homes that are located in four different neighborhoods. Which regression model should be built?

• A) \(\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 }\), where \(\mathrm { x } _ { 1 }\) is a qualitative variable that describes the four neighborhoods.
• B) \(\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 2 } + \beta _ { 3 } \mathrm { x } _ { 3 } + \beta _ { 4 } \mathrm { x } _ { 4 }\), where \(\mathrm { x } _ { 1 } - \mathrm { x } _ { 4 }\) are qualitative variables that describe the four neighborhoods.
• C) \(\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 2 } + \beta _ { 3 } \mathrm { x } _ { 3 }\), where \(\mathrm { x } _ { 1 } - \mathrm { x } _ { 3 }\) are qualitative variables that describe the four neighborhoods.
• D) \(\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 1 } ^ { 2 }\), where \(\mathrm { x } _ { 1 }\) is a qualitative variable that describes the four neighborhoods.

---

Definitions:

Marianne Weber

A prominent German sociologist and women's rights activist, known for her works on marriage, family, and social economics, and as the wife of Max Weber.

Harriet Martineau

A British social theorist and Whig writer, often cited as the first female sociologist for her significant contributions to social research and political economy.

Feminist Thinking

A way of analyzing societal structures and relationships from the perspective of advocating for gender equality and challenging gender-based disparities.

Modern Women's Movement

A social movement that aims at achieving gender equality and addressing issues specifically faced by women, gaining momentum in the late 20th century.