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:

Identity

The qualities, beliefs, personality, appearance, and/or expressions that make a person (self-identity) or group different from others.

Adolescence

The period of life between childhood and adulthood, characterized by physical, psychological, and social changes.

Social Relationships

Interactions between individuals that can be emotional, social, or professional in nature, shaping how they connect and interact within society.

Adolescents

Individuals in the transitional stage of development between childhood and adulthood, typically ranging from ages 13 to 19.