A Realtor Is Trying to Predict the Selling Price of Houses

question 91

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. $$\begin{array} { l r r r } \hline \text { Variable } & \text { Coefficients } & \text { Standard Error } & t \text {-Stat } \\\hline \text { Intercept } & 128.93746 & 2.6205302 & 49.203 \\\text { Size } & & 1.2072436 & 11.439 \\\text { FP } & 6.47601954 & 1.9803612 & 3.27 \\\hline\end{array}$$ The estimated coefficient for Size is approximately:

• A)9.5.
• B)13.8.
• C)122.5.
• D)1442.6.

---

Definitions:

"Make" Tactic

A strategy within businesses to produce goods or services in-house, as opposed to outsourcing from external suppliers.

"Buy" Tactic

A strategy in investment or marketing, suggesting the acquisition of assets or products as a beneficial move.

White-Label Goods

Products produced by one company that another company rebrands to appear as if they had made it.

Import Tariffs

Taxes imposed by a government on goods and services imported into a country.