A real estate developer wishes to study the relationship between the size of home a client will purchase (in square feet) and other variables. Possible independent variables include the family income, family size, whether there is a senior adult parent living with the family (1 for yes, 0 for no), and the total years of education beyond high school for the husband and wife. The sample information is reported below. Family Square Feet Income (000s) Family Size Senior Parent Education 1 2,300 60.8 2 0 4 2 2,300 68.4 3 1 6 3 3,400 104.5 3 0 7 4 3,360 89.3 4 1 0 5 3,000 72.2 4 0 2 6 2,900 113 2 1 10 7 4,100 125.4 5 0 6 8 2,250 89.6 3 0 8 9 4,200 133 5 0 2 10 2,800 98 3 0 6 a. Develop an appropriate multiple regression equation using stepwise regression. (Use Excel data analysis and enter number of family members first, then their income and delete any insignificant variables. Leave no cells blank - be certain to enter "0" wherever required. R and R2 adj are in percent values. Round your answers to 3 decimal places.) c. Write out the regression equation. (Round your answers to 3 decimal places.) d. Report and interpret the adjusted R2. (Round your answer to nearest percent.)
A real estate developer wishes to study the relationship between the size of home a client will purchase (in square feet) and other variables. Possible independent variables include the family income, family size, whether there is a senior adult parent living with the family (1 for yes, 0 for no), and the total years of education beyond high school for the husband and wife. The sample information is reported below.
| Family | Square Feet | Income (000s) | Family Size | Senior Parent | Education |
|---|---|---|---|---|---|
| 1 | 2,300 | 60.8 | 2 | 0 | 4 |
| 2 | 2,300 | 68.4 | 3 | 1 | 6 |
| 3 | 3,400 | 104.5 | 3 | 0 | 7 |
| 4 | 3,360 | 89.3 | 4 | 1 | 0 |
| 5 | 3,000 | 72.2 | 4 | 0 | 2 |
| 6 | 2,900 | 113 | 2 | 1 | 10 |
| 7 | 4,100 | 125.4 | 5 | 0 | 6 |
| 8 | 2,250 | 89.6 | 3 | 0 | 8 |
| 9 | 4,200 | 133 | 5 | 0 | 2 |
| 10 | 2,800 | 98 | 3 | 0 | 6 |
a. Develop an appropriate multiple regression equation using stepwise regression. (Use Excel data analysis and enter number of family members first, then their income and delete any insignificant variables. Leave no cells blank - be certain to enter "0" wherever required. R and R2 adj are in percent values. Round your answers to 3 decimal places.)
c. Write out the regression equation. (Round your answers to 3 decimal places.)
d. Report and interpret the adjusted R2. (Round your answer to nearest percent.)
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