A Real Estate Builder Wishes to Determine How House Size

question 36

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

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Definitions:

Opposition

In logic and philosophy, the relation between two propositions that have corresponding subject and predicate but differ in quality, such as one being affirmative and the other negative.

Non-categorical

Pertaining to concepts or items not organized according to a specific category or class.

Proposition

A note that communicates a viewpoint or opinion.

Subalternates

In the traditional square of opposition, the relationship between a universal and a particular proposition of the same quality (A and I, E and O): if the universal is true, the particular must be true, and if the particular is false, the universal must be false.