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

question 12

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, suppose the builder wants to test whether the coefficient on School is significantly different from 0. What is the value of the relevant t-statistic?

• A) 5.286
• B) 5.195
• C) 3.945
• D) -1.509

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Definitions:

Excludable

A characteristic of a good or service that allows owners or producers to prevent others from using it without permission.

Over Supplied

A market condition where the quantity of a good or service available exceeds the quantity demanded at the current price, often leading to a surplus and typically pressure on prices to decrease.

Marginal Cost

The rise in expenses for producing one more unit of a product or service.

Efficient Amount

The level of production or consumption that maximizes welfare and minimizes waste within an economy, often used in reference to optimal resource allocation.