Exhibit 17

question 69

Essay

Exhibit 17.8.A realtor wants to predict and compare the prices of homes in three neighboring locations.She considers the following linear models:
Model A: Price = β₀ + β₁Size + β₂Age + ε,
Model B: Price = β₀ + β₁Size + β₂Loc1 + β₃Loc2 + ε,
Model C: Price = β₀ + β₁Size + β₂Age + β₃Loc1 + β₄Loc2 + ε,
where,
Price = the price of a home (in $thousands),
Size = the square footage (in square feet),
Loc1 = a dummy variable taking on 1 for Location 1,and 0 otherwise,
Loc2 = a dummy variable taking on 1 for Location 2,and 0 otherwise.
After collecting data on 52 sales and applying regression,her findings were summarized in the following table. Note: The values of relevant test statistics are shown in parentheses below the estimated coefficients.
Refer to Exhibit 17.8.Using Model C,what is the null hypothesis for testing the joint significance of the two dummy variables?

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Definitions:

Cultural Evolution

Cultural change over time- not to be confused with progress.

Ethnocide

The violent eradication of an ethnic group's collective cultural identity as a distinctive people; occurs when a dominant society deliberately sets out to destroy another society's cultural heritage.

Indigenous Peoples

Refers to ethnic groups native to a land or region, usually with distinct cultures and social institutions prior to colonization or annexation.

Cultural Homogenization

The process through which local cultures are influenced and assimilated by a dominant culture, leading to reduced cultural diversity.