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

question 342

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, when the builder used a simple linear regression model with house size (House) as the dependent variable and education (School) as the independent variable, he
Obtained an r2 value of 23.0%. What additional percentage of the total variation in house size has
Been explained by including family size and income in the multiple regression?

• A) 2.8%
• B) 51.8%
• C) 72.6%
• D) 74.8%

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Definitions:

Electronystagmography

A diagnostic test to record involuntary movements of the eye (nystagmus) caused by a condition or as a response to a test.

Auditory-evoked Response

An electrical potential in response to an auditory stimulus, used to assess hearing and brainstem function.

Tympanometry

A diagnostic test that measures the movement of the eardrum in response to changes in air pressure, indicating middle ear function.

Otoscopy

A visual examination of the ear canal and eardrum using an otoscope.