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

question 122

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 independent variables in the model are significant at the 5% level?

• A)Income only
• B)Size only
• C)Income and Size
• D)None

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Definitions:

von Willebrand Factor

A blood glycoprotein involved in hemostasis, acting as a carrier for factor VIII and promoting adhesion of platelets to damaged blood vessel walls.

Collagen

A structural protein found in the connective tissues, such as skin, bones, and tendons, providing strength, elasticity, and support.

Extrinsic Pathway

One of the pathways that initiate the blood coagulation process, triggered by external trauma that causes blood to escape from the vascular system.

Thromboplastin

A complex enzyme that triggers blood coagulation by converting prothrombin to thrombin.