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

question 166

Multiple Choice

TABLE 14-4
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. Microsoft Excel output is provided below:
SUMMARY OUTPUT
Regression Statistics
ANOVA

-Referring to Table 14-4, one individual in the sample had an annual income of $10,000, a family size of 1, and an education of 8 years. This individual owned a home with an area of 1,000 square feet (House = 10.00) . What is the residual (in hundreds of square feet) for this data point?

• A) 8.10
• B) 5.40
• C) -5.40
• D) -8.10

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Definitions:

Random Number

A number chosen from a set with equal probability of selection, typically used in simulations and statistical sampling.

Population Proportion

The ratio of members in a specified subset to the total members of a population, often expressed as a percentage.

Sample Proportion

The fraction of the sample that represents a particular outcome or characteristic.

Confidence Interval

A range of values derived from sample statistics that is likely to contain the value of an unknown population parameter.