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

question 88

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, at the 0.01 level of significance, what conclusion should the builder reach regarding the inclusion of Income in the regression model?

• A)Income is significant in explaining house size and should be included in the model because its p-value is less than 0.01.
• B)Income is significant in explaining house size and should be included in the model because its p-value is more than 0.01.
• C)Income is not significant in explaining house size and should not be included in the model because its p-value is less than 0.01.
• D)Income is not significant in explaining house size and should not be included in the model because its p-value is more than 0.01.

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Definitions:

Female War Workers

Women who engaged in labor or took on jobs traditionally held by men during times of war, significantly changing gender roles and the workforce dynamics.

Leadership Positions

Roles or titles within an organization or group that carry responsibility for directing and guiding the actions of others.

Salaries

Regular payments made to employees for their services, typically provided on a monthly or bi-weekly basis.

Mothers And Wives

Describes roles traditionally associated with women in society, focusing on their responsibilities in family care and household management.