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It Is Desired to Build a Regression Model to Predict y=\mathrm { y } =

Question 36

Multiple Choice

It is desired to build a regression model to predict y=\mathrm { y } = the sales price of a single family home, based on the x1=x _ { 1 } = size of the house and x2=x _ { 2 } = the neighborhood the home is located in. The goal is to compare the prices of homes that are located in two different neighborhoods. A complete 2nd-order model is proposed. Which regression model proposes the complete 2 nd-order model?


A) E(y) =β0+β1x1+β2x12+β3x2+β4x1x2+β3x12x2\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 1 } ^ { 2 } + \beta _ { 3 } \mathrm { x } _ { 2 } + \beta _ { 4 } \mathrm { x } _ { 1 } \mathrm { x } _ { 2 } + \beta _ { 3 } \mathrm { x } _ { 1 } ^ { 2 } \mathrm { x } _ { 2 }
B) E(y) =β0+β1x1+β2x2\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 2 }
C) E(y) =β0+β1x1+β2x12+β3x2+β4x2\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 1 } ^ { 2 } + \beta _ { 3 } \mathrm { x } _ { 2 } + \beta _ { 4 } \mathrm { x } ^ { 2 }
D) E(y) =β0+β1x1+β2x2+β3x1x2E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 1 } x _ { 2 }

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