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

question 4

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, one individual in the sample had an annual income of $40,000, a
Family size of 1, and an education of 8 years.This individual owned a home with an area of
1,000 square feet (House = 10.00) .What is the residual (in hundreds of square feet) for this data
Point?

• A) -6.99
• B) -5.35
• C) 5.40
• D) 16.99

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Definitions:

Brain Efficiency

The ability of the brain to perform tasks quickly and accurately using the least amount of mental effort.

Disjunct

A term used in logic to refer to an element of a disjunction, where at least one of the disjuncts must be true for the disjunction to be true.

Disjunction

An operation in logic that returns true when at least one input is true.

Conjunct

In logic, an element of a conjunction, or a compound statement formed by connecting two statements with the word "and."