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. Consider the results in Table 4. Observe that the estimated coefficients of hhsize1 and hhsize2 are now negative. Does their interpretation change with respect to Table 3? Explain.
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. Consider the results in Table 4. Observe that the estimated coefficients of hhsize1 and hhsize2 are now negative. Does their interpretation change with respect to Table 3? Explain.
Chapter6: Exponential And Logarithmic Functions
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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.
Consider the results in Table 4. Observe that the estimated coefficients of hhsize1
and hhsize2 are now negative. Does their interpretation change with respect to Table
3? Explain.
![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%2F54e26e2a-0356-4245-80a1-3b67a0d9b589%2Fvlw8nmp_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
![Table 4
. regress size hhinc owner hhsizel hhsize2 hhsize3, robust
Linear regression
Number of obs
5,407
F(4, 5402)
877.84
Prob > F
0.0000
R-squared
0.4269
Root MSE
348.5
Robust
size
Coefficient std. err.
P>|t|
[95% conf. interval]
hhinc
.005163
.0004976
10.38
0.000
0041875
e061384
owner
374.5049
10.69219
35.03
0.000
353.5439
395.4659
hhsizel
-282.4495
22.50563
-12.55
0.000
-326.5696
-238.3294
hhsize2
-152.9533
20.30738
-7.53
0.000
-192.764
-113.1426
hhsize3
O (omitted)
cons
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%2F54e26e2a-0356-4245-80a1-3b67a0d9b589%2Fbunu9pe_processed.png&w=3840&q=75)
Transcribed Image Text:Table 4
. regress size hhinc owner hhsizel hhsize2 hhsize3, robust
Linear regression
Number of obs
5,407
F(4, 5402)
877.84
Prob > F
0.0000
R-squared
0.4269
Root MSE
348.5
Robust
size
Coefficient std. err.
P>|t|
[95% conf. interval]
hhinc
.005163
.0004976
10.38
0.000
0041875
e061384
owner
374.5049
10.69219
35.03
0.000
353.5439
395.4659
hhsizel
-282.4495
22.50563
-12.55
0.000
-326.5696
-238.3294
hhsize2
-152.9533
20.30738
-7.53
0.000
-192.764
-113.1426
hhsize3
O (omitted)
cons
930.3489
29.34556
31.70
0.000
872.8197
987.878
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