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

question 251

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,one economy in the sample had an aggregate consumption level of $3 billion,a GDP of $3.5 billion,and an aggregate price level of 125.What is the residual for this data point?

• A)$2.52 billion
• B)$0.48 billion
• C)- $1.33 billion
• D)- $2.52 billion

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Definitions:

Return on Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how effectively a company uses its assets to generate earnings.

Debt-Equity Ratio

The indicator that quantifies how much of a company's assets are financed through equity and how much through debt.

Total Equity

The total value of all ownership interests in a company, including common stock, preferred stock, and retained earnings.

Total Debt

The sum of all owed by a company, including both short-term and long-term liabilities.