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:...

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.

Extracted 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.


Extracted 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