SCENARIO 14-4

question 18

Multiple Choice

SCENARIO 14-4
14-10 Introduction to Multiple Regression
-Referring to Scenario 14-4, at the 0.01 level of significance, what conclusion should the builder
Draw regarding the inclusion of Size in the regression model?

• A) Size is significant in explaining house size and should be included in the model because its p-value is less than 0.01.
• B) Size is significant in explaining house size and should be included in the model because its p-value is more than 0.01.
• C) Size 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) Size is not significant in explaining house size and should not be included in the model because its p-value is more than 0.01.

---

Definitions:

Transcontinental Railroads

Railroad lines that cross an entire continent, connecting different coasts or borders and significantly enhancing transportation and economic growth.

Federal Government Spending

The total amount of money the federal government expends on various services, programs, and debt interest.

Recessions

Periods of economic decline when GDP falls consecutively for two or more quarters, typically characterized by reduced spending and increased unemployment.

Stagflation

An economic situation characterized by prolonged high inflation combined with high unemployment and stagnant demand in a country's economy.