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

question 151

Multiple Choice

SCENARIO 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 (X₁ | X₂) = 3297.7917
-Referring to Scenario 14-3,when the economist used a simple linear regression model with consumption as the dependent variable and GDP as the independent variable,he obtained an r² value of 0.971.What additional percentage of the total variation of consumption has been explained by including aggregate prices in the multiple regression?

• A)98.2
• B)11.1
• C)2.8
• D)1.1

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Definitions:

Infant Mortality

The rate at which infants die before their first birthday, often measured per 1,000 live births, indicating the health and well-being of infants in a population.

Mean Length

The average value or central tendency of a set of data points or measurements, often used in statistical analysis.

Utterance

A spoken word, statement, or vocal expression.