SCENARIO 18-1 A Real Estate Builder Wishes to Determine How House Size

question 75

Multiple Choice

SCENARIO 18-1
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:
-Referring to Scenario 18-1, at the 0.01 level of significance, what conclusion should the builder
Draw regarding the inclusion of School in the regression model?

• A) School is significant in explaining house size and should be included in the model because its p-value is less than 0.01.
• B) School is significant in explaining house size and should be included in the model because its p-value is more than 0.01.
• C) School 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) School 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:

Ohm's Law

A fundamental principle in electrical engineering that states the current through a conductor between two points is directly proportional to the voltage across the two points and inversely proportional to the resistance.

Resistive Circuit

A type of electrical circuit that consists solely of resistors and obeys Ohm's Law, designed for applications where resistance is the primary concern.

Lenz's Law

A principle stating that an induced electrical current will flow in a direction that opposes the change causing it.

Inductor Coil

A component consisting of a wire wound around a core, used in circuits to store energy in a magnetic field when electrical current flows through it.