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

question 342

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:
-Referring to Table 14-4, at the 0.01 level of significance, what conclusion should the builder draw regarding the inclusion of School in the regression model?

• A) School is significant in explaining house size and should be included in the model because its p-value is less than 0.01.
• B) School is significant in explaining house size and should be included in the model because its p-value is more than 0.01.
• C) School is not significant in explaining house size and should not be included in the model because its p-value is less than 0.01.
• D) School is not significant in explaining house size and should not be included in the model because its p-value is more than 0.01.

---

Definitions:

Failure to File

The failure of an individual or business to submit their tax return by the due date, which can result in penalties and interest charges.

Qualifying Widow(er)

A tax filing status allowing a widowed spouse to use married filing jointly tax rates for up to two years after the year of their spouse's death, provided they have a dependent child.

Qualifying Child

A dependent who meets specific IRS criteria regarding relationship, age, residency, and support, which allows the taxpayer to claim certain tax benefits.

Tax Return

A document filed with a tax authority that reports income, expenses, and other pertinent tax information.