SCENARIO 13-4
a Real Estate Builder Wishes to Determine How

question 128

Multiple Choice

SCENARIO 13-4
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: $\begin{array}{lr}\hline{\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.8479 \\\text { R Square } & 0.7189 \\\text { Adjusted R Square } & 0.7069 \\\text { Standard Error } & 17.5571 \\\text { Observations } & 50\\\hline \end{array}$

$\text { ANOVA }$
$\begin{array}{lrrrrr} & d f & \text { SS } & {M S} & F & \text { Significance } F \\\hline \text { Regression } & & & 37043.3236 & 18521.6618 & 0.0000 \\\text { Residual } & & 14487.7627 & 308.2503 & \\\text { Total } & & 49 & 51531.0863 & &\end{array}$

$\begin{array}{lrrrr}\hline & \text { Coefficients } & \text { Standard Error } &{t \text { Stat }} & \text { P-value } \\\hline \text { Intercept } & -5.5146 & 7.2273 & -0.7630 & 0.4493 \\\text { Income } & 0.4262 & 0.0392 & 10.8668 & 0.0000 \\\text { Size } & 5.5437 & 1.6949 & 3.2708 & 0.0020\\\hline \end{array}$

$\text { Also } \operatorname{SSR}\left(X_{1} \mid X_{2}\right) =36400.6326 \text { and } \operatorname{SSR}\left(X_{2} \mid X_{1}\right) =3297.7917$


-Referring to SCENARIO 13-4, which of the following values for the level of significance is the smallest for which at least one explanatory variable is significant individually?

• A)0.005
• B)0.010
• C)0.025
• D)0.050

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Definitions:

Intelligence Quotient

A measure of a person's intellectual abilities compared with the average population, typically assessed by standardized tests.

Cognitive Impairment

A reduction in cognitive functions such as memory, decision-making, or problem-solving, significant enough to interfere with daily life.

Dependent

A term used to describe someone who relies on others for support, often financial or for personal care.

Fragile X Syndrome

A genetic condition causing intellectual disability, behavioral and learning challenges, and various physical characteristics.