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.

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Definitions:

Deadlines

Explicit or agreed-upon time limits within which tasks or objectives should be completed.

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The process of collecting data, facts, and details from various sources to gain a comprehensive understanding of a topic.

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A method of gathering information and insights from one individual by another through a series of questions and answers.

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