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

question 149

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,the observed value of the F-statistic is missing from the printout.What are the degrees of freedom for this F-statistic?

• A)2 for the numerator,47 for the denominator
• B)2 for the numerator,49 for the denominator
• C)49 for the numerator,47 for the denominator
• D)47 for the numerator,49 for the denominator

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Definitions:

Marginal Revenue

The additional income generated from the sale of one more unit of a product or service.

Marginal Product

Marginal product is the additional output that is produced by adding one more unit of a specific input, holding all other inputs constant.

Optimal Labor Employment

The most efficient allocation of labor resources in a business to maximize productivity and minimize costs.

Ovens

Appliances designed for baking, heating, or roasting food, powered variously by electricity, gas, or other fuels.