Question

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		2,240		60.8		2		0		4
2		2,380		68.4		2		1		6
3		3,640		104.5		3		0		7
4		3,360		89.3		4		1		0
5		3,080		72.2		4		0		2
6		2,940		114		3		1		10
7		4,480		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

  Click here for the Excel Data File

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.)

2. Select all independent variables that should be in the final model. (You may select more than one answer. Single-click the box with the question mark to produce a check mark for a correct answer and double-click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

• Senior parent
• Square feet
• Family size
• Income
• Education

Answer 1

I have answered the question below

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Answer:

A step wise regression method to determine a regression equation that begins with a single independent variable and adds or deletes independent variables one by one. Only independent variables with non-zero regression coefficients are included in the regression equation.

Using the concept of step wise method, observe that the above multiple linear regression contains two independent variables are non-zero which are senior parent and Education.

Hence, the independent variables included in the final regression equation is, income and family size.

Use the Minitab to perform the stepwise regression analysis with the help of following steps:

Step 1: Enter the data into MINITAB worksheet.

Step 2: Go to StatRegressionRegressionFit linear regression model.

Step 3: Double click on Square Feet to shift it into Response and double click on the variables Income and Family size to transfer it into Predictors.

Step 4: Click on step wise regression stepwise.

Step 4: Click Ok.

From the above output, the multiple linear regression equation is,