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

question 145

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,what is the predicted consumption level for an economy with GDP equal to $4 billion and an aggregate price index of 150?

• A)$1.39 billion
• B)$2.89 billion
• C)$4.75 billion
• D)$9.45 billion

---

Definitions:

Constitution

The Constitution is a fundamental set of principles and laws that outlines the structure, powers, and duties of a government and the rights of its citizens, serving as the supreme legal authority within a country or organization.

Veto State Laws

A concept pertaining to the principle that the federal government, under certain conditions, can nullify or reject laws passed by state governments, although in practice, such federal veto power is not directly exercised over state laws but through the court system interpreting constitutionality.

James Madison

The fourth President of the United States, hailed as the "Father of the Constitution" for his pivotal role in drafting and promoting the U.S. Constitution and the Bill of Rights.

Congress

The legislature of the United States, consisting of two houses: the Senate and the House of Representatives, responsible for making federal laws.