A Real Estate Builder Wishes to Determine How House Size

question 8

Multiple Choice

A real estate builder wishes to determine how house size (House) is influenced by family income (Income) ,family size (Size) ,and education of the head of household (School) .House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is in years.The builder randomly selected 50 families and constructed the multiple regression model.The business literature involving human capital shows that education influences an individual's annual income.Combined,these may influence family size.With this in mind,what should the real estate builder be particularly concerned with when analyzing the multiple regression model?

• A)Randomness of error terms
• B)Collinearity
• C)Normality of residuals
• D)Missing observations

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Definitions:

MARS Model

A framework identifying four factors that influence an individual's behavior in organizations: Motivation, Ability, Role perceptions, and Situational factors.

Role Perceptions

The beliefs and expectations individuals have about their roles, including their duties, behaviors, and responsibilities in a given position.

Job Performance

The level of effectiveness and efficiency with which an individual fulfills their job roles and responsibilities.

Ethical Sensitivity

The ability to perceive and evaluate the ethical aspects of a situation or decision-making process.