A mortgage department of a large bank is studying its recent loans. Of particular interest is how such factors as the value of the home (in thousands of dollars), education level of the head of the household, age of the head of the household, current monthly mortgage payment (in dollars), and gender of the head of the household (male = 1, female = 0) relate to the family income. Are these variables decimal places.) effective predictors of the income of the household? A random sample of 25 recent loans is obtained. (Round the final answers to 3 Income Value Years of (000$) Mortgage (000$) Education Age $40.3 Payment $190 Gender 14 53 $230 39.6 121 15 49 370 40 .8 161 14 44 397 40.3 161 14 39 181 40.0 179 14 53 378 38.1 99 14 46 304 40.4 114 15 42 285 40.7 202 14 49 551 40. 8 184 13 37 370 37.1 90 14 43 135 39.9 181 14 48 332 OHPOPPPOOP POOOHOOHPHP 40.4 143 15 54 217 38.0 132 14 44 490 39. 0 127 14 37 220 39.5 153 14 50 270 40.6 145 14 50 40 . 3 279 174 15 52 329 40.1 177 15 47 274 41.7 188 15 49 433 40. 1 153 15 53 333 40 .6 150 16 58 14840.4 173 13 42 390 40.9 163 14 46 142 40. 1 150 15 50 343 38.5 139 14 45 373 a. Determine the regression equation. Y = X1 + X2 - X3 - X4 + X5 b. What is the value of R2 ? Comment on the value. R2 = c. Conduct a global hypothesis test to determine whether any of the independent variables are different from zero. Test at a significance level of 0.05. Analysis of Variance Source DF SS MS F p Regression 0.000 Error Total 24 26.530d. Conduct individual hypothesis tests to determine whether any of the independent variables can be dropped. Test at a significance level of 0.05. (Negative answer should be indicated by a minus sign.) Predictor Coef Standard error t-ratio P Constant 2.936 6.666 Value 6 . 628669 5 . 769 6.666 Years 6.2412 2.693 Age -8 . 84895 8.134 Mortgage -6.666465 -6.319 Sex 6.2491 6.669 | 5 = P-sq = % P-sqladj) = '36 Consider dropping the variables (Click to select) v and (Click to select) v . e. If variables are dropped, recompute the regression equation and R2 . The new regression equation is: Y'= + X1+ X2 + X5. The Rsquare value is