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

question 193

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,to test for the significance of the coefficient on gross domestic product,the p-value is

• A)0.0001
• B)0.8330
• C)0.8837
• D)0.9999

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Definitions:

Average Variable Costs

represent the variable costs (costs that change with output level) per unit of output, calculated by dividing the total variable costs by the quantity of output produced.

Marginal Cost

The cost of producing one additional unit of a product, calculated by the change in total cost divided by the change in quantity.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output within a business.

Vertical Distance AB

A measure of the difference in height between two points, A and B, often used in mathematics and physics to determine the direct vertical separation.