We conduct a regression of size on hhinc, owner, hhsize, hhsize2,and hhsize3. We do not include the constant. The regression output is reported in Table 3. Would you conclude that the home size increases with the household size? Interpret the sign and magnitude of the estimated coefficients of hhsize1, hhsize2, and hhsize3.

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
Problem 31EQ
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a) We conduct a regression of size on hhinc, owner, hhsize, hhsize2,and hhsize3. We do not include the constant. The regression output is reported in Table 3. Would you conclude that the home size increases with the household size? Interpret the sign and magnitude of the estimated coefficients of hhsize1, hhsize2, and hhsize3.

Table 3
regress size hhinc owner hhsizel hhsize2 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.
t
P>|t|
[95% conf. interval]
hhinc
.005163
.0004976
10.38
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
777.3956
21.42977
36.28
0.000
735.3846
819.4065
hhsize3
930.3489
29.34556
31.70
0.000
872.8197
987.878
II I| I| I|I
Transcribed Image Text:Table 3 regress size hhinc owner hhsizel hhsize2 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. t P>|t| [95% conf. interval] hhinc .005163 .0004976 10.38 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 777.3956 21.42977 36.28 0.000 735.3846 819.4065 hhsize3 930.3489 29.34556 31.70 0.000 872.8197 987.878 II I| I| I|I
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