Assume You Ran a Multiple Regression to Gain a Better

question 33

Multiple Choice

Assume you ran a multiple regression to gain a better understanding of the relationship between lumber sales, housing starts, and commercial construction. The regression uses lumber sales (in $100,000s) as the response variable with housing starts (in 1,000s) and commercial construction (in 1,000s) as the explanatory variables. The estimated model is Lumber Sales = β₀ + β₁Housing Starts + β₂Commercial Constructions + ε. The following ANOVA table summarizes a portion of the regression results. If Housing Starts were 17,000 and Commercial Construction was 3,200, the best estimate of Lumber Sales would be ________.

• A) $16,920,000
• B) $16,925,370
• C) $22,014,000
• D) $22,290,000

---

Definitions:

High-Speed Color Copier

A device capable of reproducing documents and images quickly in full color.

Competitive Advantage

An advantage or condition that elevates a company's standing above that of its competitors in the business arena.

Telecommunications Companies

Organizations that provide services related to electronic communication such as telephone, internet, and television broadcasting.

Innovation in Business

The introduction of new ideas, methods, or products to improve efficiency, effectiveness, or competitive advantage in a business setting.