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

question 276

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, 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:

Gross Domestic Product

The total value of all goods and services produced over a specific time period within a country's borders, used as a broad measure of economic performance.

High-Income Countries

Nations with a high gross national income per capita, which typically have advanced economic structures and offer a high standard of living to their citizens.

Latin American

Pertaining to regions in the Americas where Romance languages (primarily Spanish and Portuguese) are primarily spoken, encompassing cultural and historical aspects.

Sub-Saharan Africa

A geographical term used to describe the area of the African continent that lies south of the Sahara Desert.