Exhibit 17

question 106

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 B,what is the value of the test statistic for testing the joint significance of the variable Time and the interaction variable Time × Prime?

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Definitions:

Whole Child Concept

An educational approach that values nurturing all aspects of a child's development, including physical, emotional, social, and cognitive growth.

Intellectual Ability

Refers to the capacity to think, reason, solve problems, and learn, often measured through IQ tests or other cognitive assessments.

Social Ability

The skill to interact and communicate effectively with others in social settings.

Bronfenbrenner

Urie Bronfenbrenner developed the Ecological Systems Theory to explain how the inherent qualities of a child and the characteristics of the external environment which the child finds himself in interact to influence how the child will grow and develop.