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:...

Figure 1 reports a scatter plot of hhinc (horizontal axis) and size (vertical axis). Do
you see any correlation in the data? Can you conclude that a higher net income
causes a higher home size?

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: 100000 200000 400000 300000 hhine 500000 Figure 1 000s 000 000€ 0002 000L