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

question 254

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, the observed value of the F-statistic is missing from the printout. What are the degrees of freedom for this F-statistic?

• A) 46 for the numerator, 3 for the denominator
• B) 3 for the numerator, 49 for the denominator
• C) 46 for the numerator, 49 for the denominator
• D) 3 for the numerator, 46 for the denominator

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Definitions:

Principles of Federalism

A political system where power is divided between a central government and various regional governments.

Bill of Rights

The first ten amendments to the United States Constitution, guaranteeing fundamental rights and protections to American citizens.

Public School Education

An education system provided by the government in which children receive free education accessible to all.

U.S. Citizenship

The status of being a legal member of the United States, with certain rights, duties, and benefits, obtainable by birth or through naturalization.