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:

Content Theories

Theories that focus on identifying and understanding the specific needs and motives that drive human behavior and satisfaction in organizational contexts.

Different Needs

The varied and unique requirements or wishes of individuals or groups to achieve satisfaction or fulfillment.

Motivation

The internal drive that compels individuals to act towards achieving goals, influenced by both intrinsic factors (inner desire) and extrinsic factors (external rewards).

Organizational Behavior

A field of study focused on understanding, explaining, and improving attitudes of individuals and groups in organizations.