TABLE 14-4 A Real Estate Builder Wishes to Determine How House Size

question 321

Multiple Choice

TABLE 14-4
A real estate builder wishes to determine how house size (House) is influenced by family income (Income) and family size (Size) .House size is measured in hundreds of square feet and income is measured in thousands of dollars.The builder randomly selected 50 families and ran the multiple regression.Partial Microsoft Excel output is provided below: Also SSR (X₁ ∣ X₂) = 36400.6326 and SSR (X₂ ∣ X₁) = 3297.7917
-Referring to Table 14-4 and allowing for a 1% probability of committing a type I error,what is the decision and conclusion for the test H₀ : β₁ = β₂ = 0 vs.H₁ : At least one β_j ≠ 0,j = 1,2?

• A)Do not reject H₀ and conclude that the 2 independent variables taken as a group have significant linear effects on house size.
• B)Do not reject H₀ and conclude that the 2 independent variables taken as a group do not have significant linear effects on house size.
• C)Reject H₀ and conclude that the 2 independent variables taken as a group have significant linear effects on house size.
• D)Reject H₀ and conclude that the 2 independent variables taken as a group do not have significant linear effects on house size.

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