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

question 98

Multiple Choice

SCENARIO 14-4
A real estate builder wishes to determine how house size (House) is influenced by family income (Income) and family size (Size) . House size is measured in hundreds of square feet and income is measured in thousands of dollars. The builder randomly selected 50 families and ran the multiple regression. Partial Microsoft Excel output is provided below:


Also SSR (X₁ | X₂) = 36400.6326 and SSR (X₁ | X₂) = 3297.7917
-Referring to Scenario 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.

---

Definitions:

Shrews

Small insectivorous mammals with long snouts, belonging to the family Soricidae.

Lepidosaur Lineage

A lineage of reptiles that includes squamates (lizards, snakes) and rhynchocephalians (tuataras), characterized by their scaled skin.

Extant Turtles

Refers to turtle species that are currently existing or living, as opposed to those that have become extinct.

Metabolic Mechanisms

The biochemical processes that occur within a living organism to maintain life.