SCENARIO 14-4
a Real Estate Builder Wishes to Determine How $\beta$

question 115

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 and allowing for a 1% probability of committing a type I error,what is ^{the decision and conclusion for the test} H₀ : $\beta$ ₁ = $\beta$ ₂ $\neq$ 0 vs.H₁ : At least one $\beta$ _j $\neq$ 0,j = 1,2 ?

• A)Do not reject H₀ and conclude that the 2 independent variables taken as a group have significant linear effects on house size.
• B)Do not reject H₀ and conclude that the 2 independent variables taken as a group do not have significant linear effects on house size.
• C)Reject H₀ and conclude that the 2 independent variables taken as a group have significant linear effects on house size.
• D)Reject H₀ and conclude that the 2 independent variables taken as a group do not have significant linear effects on house size.

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Definitions:

Involuntary Unemployment

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Psychological Well-Being

A state comprising elements like self-acceptance, positive relationships with others, autonomy, environmental mastery, purpose in life, and personal growth.

Five-Factor Model

An approach that outlines human personality via five major traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Conscientiousness

A characteristic of personality defined by being well-organized, reliable, and having a powerful commitment to responsibilities.