Exhibit 17

question 43

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.

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Definitions:

Draft Payable

A document instructing the payment of a specified amount of money, typically used in international trade.

Negotiability

The quality of a document (such as a check or note) signifying it can be transferred to another holder, who then has the legal right to enforce it.

Revised Article 1

Refers to the updated first Article of the Uniform Commercial Code (UCC), which standardizes laws in the sales and leasing of goods across the United States.

UCC

Refers to the Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.