TABLE 14-4 A Real Estate Builder Wishes to Determine How House Size

question 171

Multiple Choice

TABLE 14-4
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 Table 14-4, at the 0.01 level of significance, what conclusion should the builder reach regarding the inclusion of Income in the regression model?

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

Common Law

The law as found in the recorded judgments of the courts.

Environmental Nuisance

An act or condition that harms the environment, often by polluting or disrupting natural processes, and can negatively affect the health and well-being of communities.

Defendant

A person, company, or institution sued or accused in a court of law.

Canadian Environmental Assessment Act

A piece of federal legislation in Canada that mandates the assessment of the environmental impacts of certain proposed projects before they are allowed to proceed.