The file P02_35.xlsx contains data from a survey of 500 randomly selected households. For this problem, use Monthly Payment as the dependent variable in several regressions, as explained below.
a. Beginning with Family Size, iteratively add one explanatory variable and estimate the resulting regression equation to explain the variation in Monthly Payment. If adding any explanatory variable causes the adjusted R2 measure to fall, do not include that variable in subsequent versions of the regression model. Otherwise, include the variable and consider adding the next variable in the set. Which variables are included in the final version of your regression model?
b. Interpret the final estimated regression equation you obtained through the process outlined in part a. Also, interpret the standard error of estimate se, R2, and the adjusted R2 for the final estimated model.