TABLE 13-4 A Real Estate Builder Wishes to Determine How House Size

question 103

Multiple Choice

TABLE 13-4
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 13-4, suppose the builder wants to test whether the coefficient on Income 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:

Plato

An ancient Greek philosopher, a student of Socrates and teacher of Aristotle, known for his contributions to Western philosophy, metaphysics, ethics, and epistemology.

Psychological Processes

Mental activities involved in acquiring, processing, and storing knowledge, which influence behavior and perception.

Cultural Differences

Refers to the diverse customs, beliefs, practices, values, norms, and materials among people from different backgrounds.

Preferential Treatment

The act of giving advantages or benefits to a person or a group over others not based on merit but often due to other factors like status, relationship, or bias.