A Realtor Is Trying to Predict the Selling Price of Houses

question 13

Multiple Choice

A realtor is trying to predict the selling price of houses in Greenville (in thousands of dollars) as a function of Size (measured in thousands of square feet) and whether or not there is a fireplace (FP is 0 if there is no fireplace, 1 if there is a fireplace) . Part of the regression output is provided below, based on a sample of 20 homes. Some of the information has been omitted. $$\begin{array} { l r r r r } \hline \text { Variable } & \text { Coefficients } & \text { Standard Error } & \text { t-Stat } & \text { P-value } \\\hline \text { Intercept } & 128.93746 & 2.6205302 & 49.203 & 8.93 \mathrm { E } - 20 \\\text { Size } & & 1.2072436 & 11.439 & 2.09 \mathrm { E } - 09 \\\text { FP } & 6.47601954 & 1.9803612 & 3.27 & 0.004512 \\\hline\end{array}$$ Which statement is supported by the regression output?

• A)At ? = .05, FP is not a significant predictor in a two-tailed test.
• B)A fireplace adds around $6476 to the selling price of the average house.
• C)A large house with no fireplace will sell for more than a small house with a fireplace.
• D)FP is a more significant predictor than Size.

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Definitions:

Endocrine System

The collection of glands that produce hormones to regulate metabolism, growth and development, tissue function, sexual function, reproduction, sleep, and mood, among other things.

Somatic Nervous System

The somatic nervous system is part of the peripheral nervous system responsible for controlling voluntary movements of the body and transmitting sensory information to the central nervous system.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out information throughout the body.

Sensory Neurons

Nerve cells that are responsible for converting external stimuli from the environment into internal electrical impulses.