Real Estate Builder a Real Estate Builder Wishes to Determine

question 133

Essay

Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income, family size, and education of the head of household. House size is measured in hundreds of square feet, income is measured in thousands of dollars, and education is measured in years. A partial computer output is shown below. SUMMARY OUTPUT ANOVA
  {Real Estate Builder Narrative} 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?

---

Definitions:

Optimizing

The process of making something as effective, functional, or profitable as possible.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.

Price Elasticity

An indicator of the sensitivity of demand for a product to variations in its price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.