Consider the results in Table 3. What is the predicted home size of a household composed of 5 members, renting, and with annual net income equal to 37,150 euros? How does it differ from the predicted home size of a household composed of 1 member, owning, and with annual net income equal to 37,150 euros?
Consider the results in Table 3. What is the predicted home size of a household composed of 5 members, renting, and with annual net income equal to 37,150 euros? How does it differ from the predicted home size of a household composed of 1 member, owning, and with annual net income equal to 37,150 euros?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Consider the results in Table 3. What is the predicted home size of a household
composed of 5 members, renting, and with annual net income equal to 37,150 euros?
How does it differ from the predicted home size of a household composed of 1
member, owning, and with annual net income equal to 37,150 euros?
Transcribed Image Text:The questions below are based on a dataset containing the characteristics of 5,407
households. In particular, we will use the following variables:
- size: home size, measured in square feet.
- hhinc: annual household net income, measured in euros.
- owner. dummy variable equal to 1 if the living space is owned, and 0 if the living
space is rented.
- hhsize1: dummy variable equal to 1 if the number of household's members is 1 or
2, and 0 otherwise.
hhsize2: dummy variable equal to 1 if the number of household's members is 3 or
4, and 0 otherwise.
hhsize3: dummy variable equal to 1 if the number of household's members is 5 or
above 5, and 0 otherwise.
- edu: education level of household's members.
The Appendix contains tables with the critical values of the standard normal distribution and
the F distribution.
![Table 3
. regress size hhánc owner hhsizel hhsizez hhsize3, robust noconstant
Linear regression
Number of obs
5,407
F(5, 5402)
11317.91
Prob > F
0.0000
R-squared
0.9157
Root MSE
348.5
Robust
size Coefficient std. err.
P>|t|
(95% conf. interval]
hhinc
.005163
.0004976
18.38
0.000
.0041875
.0061384
Owner
374.5049
10.69219
35.03
0.000
353.5439
395.4659
hhsizel
647.8994
12.79973
50.62
0.000
622.8068
672.992
hhsize2
7.3956רר
21.42977
36.28
0.000
735.3846
819.4065
hhsize3
930.3489
29.34556
31.70
0.000
872.8197
987.878](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a398711-6bb1-446b-9b69-373cfacdd600%2F9d2444cf-09c4-42c5-9efe-4ce22c6abf2b%2Fnymeyzm_processed.png&w=3840&q=75)
Transcribed Image Text:Table 3
. regress size hhánc owner hhsizel hhsizez hhsize3, robust noconstant
Linear regression
Number of obs
5,407
F(5, 5402)
11317.91
Prob > F
0.0000
R-squared
0.9157
Root MSE
348.5
Robust
size Coefficient std. err.
P>|t|
(95% conf. interval]
hhinc
.005163
.0004976
18.38
0.000
.0041875
.0061384
Owner
374.5049
10.69219
35.03
0.000
353.5439
395.4659
hhsizel
647.8994
12.79973
50.62
0.000
622.8068
672.992
hhsize2
7.3956רר
21.42977
36.28
0.000
735.3846
819.4065
hhsize3
930.3489
29.34556
31.70
0.000
872.8197
987.878
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