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Regression equation: Size of a home vs other variables

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

Develop an appropriate regression equation. Which independent variable would you include in the final regression equation? Use the stepwise method.

Family Square Feet Income 000's Family Size Senior Parent Education
1 2240 60.8 2 0 4
2 2380 68.4 2 1 6
3 3640 104.5 3 0 7
4 3360 89.3 4 1 0
5 3080 72.2 4 0 2
6 2940 114 3 1 10
7 4480 125.4 6 0 6
8 2520 83.6 3 0 8
9 4200 133 5 0 2
10 2800 95 3 0 6

Solution Summary

Stepwise regression output from SPSS and a brief discussion on the independent variable(s) included in the final regression equation.

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