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

question 122

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, what minimum annual income would an individual with a family size
Of 4 and 16 years of education need to attain a predicted 10,000 square foot home (House =
100) ?

• A) $44.14 thousand
• B) $56.75 thousand
• C) $178.33 thousand
• D) $211.85 thousand

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Definitions:

Replication

The process of copying or reproducing something, such as a study or an experiment, to ensure accuracy or verify results.

Chance Fluctuation

Random variation in statistical data that occurs without a specific cause, which can affect the interpretation of results.

Replication

Replication is the process of conducting a study again using the same methods but in a different context or with a different sample, to verify the reliability of the original findings.

Statistical Tests

Procedures used in statistics to determine whether hypotheses about data sets are supported or refuted.