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

question 109

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 14-4,which of the following values for the level of significance is the smallest for which at most one explanatory variable is significant individually?

• A)0.001
• B)0.010
• C)0.025
• D)0.050

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Definitions:

Demand Deposits

Bank accounts that allow the holder to withdraw funds without advance notice, such as checking accounts.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against specified deposit liabilities, as dictated by the central bank's regulations.

Primary Reserves

Liquid assets held by financial institutions to meet regulatory requirements and immediate liquidity needs.

Secondary Reserves

Assets that are easily convertible into cash but are not held in the form of cash itself, serving as a backup for primary reserves in financial institutions.