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

question 148

Short Answer

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, what annual income (in thousands of dollars) would an individual with a family size of 9 need to attain a predicted 5,000 square foot home (House = 50)?

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Definitions:

Abolitionists

Individuals who advocated for the immediate end of slavery and the emancipation of slaves in the 18th and 19th centuries.

Abraham Lincoln

The 16th President of the United States, remembered for leading the country during the Civil War and issuing the Emancipation Proclamation, which began the process of freedom for America's slaves.

Slaves Freed

The act of emancipating or the state of being emancipated from slavery; particularly refers to historical events such as the Emancipation Proclamation or the end of the Civil War in the United States.

Seneca Falls Convention

The first women's rights convention, held in 1848 in Seneca Falls, New York, marking the beginning of the organized women's suffrage movement in the United States.