We conduct a regression of size on hhinc, owner, hhsize1, hhsize2, and hhsize3. We do not include the constant. The regression output is reported in Table 3. Would you conclude that the home size increases with the h

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We conduct a regression of size on hhinc, owner, hhsize1, hhsize2, and hhsize3. We
do not include the constant. The regression output is reported in Table 3. Would you
conclude that the home size increases with the household size? Interpret the sign
and magnitude of the estimated coefficients of hhsize1, hhsize2, and hhsize3

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
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.
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