Question

In: Advanced Math

A real estate developer wishes to study the relationship between the size of home a client...

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 2,200 60.8 2 0 4
2 2,300 68.4 2 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 2,900 114 3 1 10
7 4,100 125.4 6 0 6
8 2,520 83.6 3 0 8
9 4,200 133 5 0 2
10 2,800 95 3 0 6
  1. 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.)
Step 1 2
Constant
Family Size
t-statistic
p-value
Income
t-statistic
p-value
S
R-Sq
R-Sq(adj)

Solutions

Expert Solution

Make sure your excel sheet has data analysis option enabled. for that go to file option after that click on options then choose add-ins then click on analysis tool pack and click go. After that you can see 4 options,click on the first option and click ok. You will see a data analysis option appears under data tab.

Thanks.

You will see this box when you will click on data analysis option. In Y range select the dependent variable column and in X range select all the independent variables column altogether. Click on labels option if you are taking labels also while selecting the column. See the result in the same sheet so select the output range also and then click on the cell where you want the solution.You will get a table and all the details.

Note. Dont merge the cells.


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