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

question 138

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,one economy in the sample had an aggregate consumption level of $4 billion,a GDP of $6 billion,and an aggregate price level of 200.What is the residual for this data point?

• A)$4.39 billion
• B)$0.39 billion
• C)- $0.39 billion
• D)- $1.33 billion

---

Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, leading to a stable market condition.

Surplus

A surplus occurs when the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices or an accumulation of unsold products.

Shortage

At a given price, the amount by which quantity demanded exceeds quantity supplied; a shortage usually forces the price up.

Low-Calorie Substitutes

Food or drink products with fewer calories than the standard versions, often used for weight management.