Real Estate Builder a Real Estate Builder Wishes to Determine

question 87

Essay

Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income, family size, and education of the head of household. House size is measured in hundreds of square feet, income is measured in thousands of dollars, and education is measured in years. A partial computer output is shown below. SUMMARY OUTPUT ANOVA
{Real Estate Builder Narrative} Suppose the builder wants to test whether the coefficient on education is significantly different from 0. What is the value of the relevant t -statistic?

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Definitions:

Multiple Regression

A statistical technique used to model the relationship between two or more independent variables and a dependent variable by fitting a linear equation to observed data.

Nominal Variable

A categorical variable with two or more categories that have no intrinsic ordering to them.

Regression Model

A mathematical method applied to forecast the outcome of a target variable by analyzing the influence of one or several predictor variables.

Indicator Variable

A variable that takes on the value of 0 or 1 to indicate the absence or presence of some categorical effect or attribute.