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 in detail.
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 in detail.
Step by step
Solved in 2 steps