We conduct a simple regression of size on hhinc. The regression output is reported in Table 1. Interpret the sign and magnitude of the estimated coefficients.
We conduct a simple regression of size on hhinc. The regression output is reported in Table 1. Interpret the sign and magnitude of the estimated coefficients.
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We conduct a simple regression of size on hhinc. The regression output is reported
in Table 1. Interpret the sign and magnitude of the estimated coefficients.
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 1
• regress size hhinc
Source
df
MS
Number of obs
5,407
F(1, 5405)
1613.34
1 263141566
Model
263141566
Prob > F
0.0000
Residual
R-squared
Adj R-squared
Total
1.1447e+09
5,406 211749.457
Root MSE
size
Coefficient
Std. err.
t
P>|t|
[95% conf. interval]
hhinc
.0082545
.0002055
40.17
0.000
.0078516
.0086574
-cons
800.9835
9.404917
85.17
0.000
782.5461
819.4209](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a398711-6bb1-446b-9b69-373cfacdd600%2F5f9ca982-a83b-47df-a877-d41ac76ac1e4%2F2yc9u9v_processed.png&w=3840&q=75)
Transcribed Image Text:Table 1
• regress size hhinc
Source
df
MS
Number of obs
5,407
F(1, 5405)
1613.34
1 263141566
Model
263141566
Prob > F
0.0000
Residual
R-squared
Adj R-squared
Total
1.1447e+09
5,406 211749.457
Root MSE
size
Coefficient
Std. err.
t
P>|t|
[95% conf. interval]
hhinc
.0082545
.0002055
40.17
0.000
.0078516
.0086574
-cons
800.9835
9.404917
85.17
0.000
782.5461
819.4209
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