SCENARIO 14-4

question 103

Multiple Choice

SCENARIO 14-4
14-10 Introduction to Multiple Regression
-Referring to Scenario 14-4, when the builder used a simple linear regression model with house
Size (House) as the dependent variable and family size (Size) as the independent variable, he
Obtained an r2 value of 1.25%.What additional percentage of the total variation in house size has
Been explained by including income in the multiple regression?

• A) 15.00%
• B) 70.64%
• C) 71.50%
• D) 73.62%

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market price.

Simultaneous Decrease

A situation where two or more economic variables or quantities decline at the same time.

Demand Curve

The Demand Curve is a graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell.