A Real Estate Builder Wishes to Determine How House Size

question 1

Multiple Choice

A real estate builder wishes to determine how house size (House) is influenced by family income (Income) , family size (Size) , and education of the head of household (School) . House size is measured in hundreds of square feet, income is measured in thousands of dollars, and education is in years. The builder randomly selected 50 families and ran the multiple regression. The business literature involving human capital shows that education influences an individual's annual income. Combined, these may influence family size. With this in mind, what should the real estate builder be particularly concerned with when analyzing the multiple regression model?

• A) randomness of error terms
• B) collinearity
• C) normality of residuals
• D) missing observations

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Definitions:

Employee Training

The process of enhancing the skills, knowledge, and competencies of employees through organized learning activities to improve individual and organizational performance.

Learning Curves

A concept that illustrates how the efficiency or productivity of an individual or organization improves as tasks are performed repeatedly.

Time Measurements

The quantification of duration required to complete tasks or activities, often used in planning, scheduling, and efficiency analysis.

Workplace Culture

The character and personality of an organization, defined by its values, traditions, beliefs, interactions, behaviors, and attitudes.