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

=Answer1 has the regression analysis with all 4 independent variables. Using the stepwise method, we toss the one with the largest non-significant p-value which is Senior Present. Then do another regression analysis with only 3 independent variables. Answer2 has this. From this analysis we can toss education (has the largest non-significant p-value) and do another analysis which is in Answer3. In this analysis we see that Income is not quite significant (p=.0586) at the 0.05 level so we can toss it and do an analysis with Family Size as the only independent variable. This result is given in Answer4. The final regression equation has Family Size as the only independent variable and it can stay in the regression equation because it is statistically significant (p=.0003). The prediction equation is given at the bottom of Answer4. This should answer your question. If not let me know.

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