Homework Help is Here – Start Your Trial Now!
Business
Economics
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?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
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?

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.
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
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
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Investments
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS