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

question 108

Short Answer

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,one individual in the sample had an annual income of $100,000 and a family size of 10.This individual owned a home with an area of 7,000 square feet (House = 70.00).What is the residual (in hundreds of square feet)for this data point?

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Definitions:

Loan Date

The specific date on which a loan agreement goes into effect or when the loan funds are disbursed.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, expressed as an annual percentage.

Scheduled Payment

Regularly planned payments towards a debt or obligation, often part of a loan or mortgage repayment plan.

Equivalent Payment

A payment or series of payments adjusted to represent a common value under certain specified conditions, often used in comparing different financial plans.