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

question 125

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,which of the following values for the level of significance is the smallest for which at least one explanatory variable is significant individually?

• A)0.005
• B)0.010
• C)0.025
• D)0.050

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Definitions:

Qualitative Methods

Research techniques that collect data that is not in numerical form such as interviews, observations, and textual analysis.

Judgmental Forecasting

A forecasting method that relies on intuitive judgments, opinions, and subjective estimates rather than on rigorous mathematical models.

Shiller Real Home Price Index

An index that tracks changes in the price of residential real estate in the United States, adjusting for inflation.

Simple Moving Average

A method used in technical analysis to smooth out price data by continuously updating the average price of a security over a specific period of time.