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

question 342

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 draw regarding the inclusion of School in the regression model?

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

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Definitions:

Monthly Payroll

The total amount of money paid by a business to its employees in a month, encompassing wages, salaries, and other compensations.

Salaries Payable

A liability account that records the amount of salaries due but not yet paid to employees.

Ceilings For Earnings

Limits set on the amount of income that can be considered for certain calculations, such as social security or pension benefits.

Defined Contribution

A type of retirement plan where the employer, employee, or both make contributions on a regular basis, but the final benefits received depend on the investment's performance.