SCENARIO 17-1
a Real Estate Builder Wishes to Determine How

question 380

Multiple Choice

SCENARIO 17-1
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 ran the multiple regression. Microsoft Excel
output is provided below: SUMMARY OUTPUT
Regression Statistics
$\begin{array} { l l } \text { Multiple R } & 0.865 \\ \text { R Square } & 0.748 \\ \text { Adjusted R Square } & 0.726 \\ \text { Standard Error } & 5.195 \\ \text { Observations } & 50 \end{array}$
ANOVA
$\begin{array} { l c c c c c } & d f & \text { SS } & \text { MS } & F & \text { Signif } F \\ \text { Regression } & & 3605.7736 & 1201.9245 & & 0.0000 \\ \text { Residual } & & 1214.2264 & 26.3962 & & \\ \text { Total } & 49 & 4820.0000 & & & \end{array}$

$\begin{array} { l c l c c } & \text { Coeff } & \text { StdError } & t \text { Stat } & P \text {-value } \\ \text { Intercept } & - 1.6335 & 5.8078 & - 0.281 & 0.7798 \\ \text { Income } & 0.4485 & 0.1137 & 3.9545 & 0.0003 \\ \text { Size } & 4.2615 & 0.8062 & 5.286 & 0.0001 \\ \text { School } & - 0.6517 & 0.4319 & - 1.509 & 0.1383 \end{array}$
-Referring to Scenario 17-1, suppose the builder wants to test whether the coefficient on Income is significantly different from 0. What is the value of the relevant t-statistic?

• A) 5.286
• B) 5.195
• C) 3.945
• D) - 1.509

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Definitions:

Intersexual Selection

A form of natural selection in which individuals of one sex (usually females) choose mates from the opposite sex based on certain desirable traits, affecting the fitness of individuals.

Intrasexual Selection

The process by which individuals of the same sex actively compete for mates. Typically numerous males compete for a limited number of receptive females.

Pair Bonds

The strong affinity that develops in some species between a male and female that mate and produce offspring.

Inclusive Fitness

A concept in evolutionary biology that considers an organism's success in passing on its genes, including through kinship.