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

question 38

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,what are the residual degrees of freedom that are missing from the output?

• A)2
• B)47
• C)49
• D)50

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Definitions:

Monte Carlo Simulation

Monte Carlo Simulation is a computational technique that uses random sampling to estimate complex mathematical or physical systems' behaviors.

Unit Variable Cost

Unit Variable Cost is the cost associated with producing one additional unit of a product, including materials and labor, which varies with the volume of production.

Data Table Function

A feature in software that allows users to organize and analyze data in table format, often with sorting, filtering, and computational capabilities.

Percentage Of Risk

The proportionate part of a total risk that can be attributed to a specific factor or action, often expressed as a percentage.