Instruction 13 ANOVA Note: Adj R Square = Adjusted R Square; Std

question 86

Multiple Choice

Instruction 13.4
A real estate builder wishes to determine how house size (House) is influenced by family income (Income) , family size (Size) and education of the head of household (School) . House size is measured in hundreds of square metres, income is measured in thousands of dollars and education is in years. The builder randomly selected 50 families and ran the multiple regression. Microsoft Excel output is provided below:
OUTPUT
SUMMARY
Regression Statistics
$\begin{array} { l l } \text { Multiple R } & 0.865 \\ \text { R Square } & 0.748 \\ \text { Adj. R Square } & 0.726 \\ \text { Std. Error } & 5.195 \\ \text { Observations } & 50 \end{array}$
ANOVA
$\begin{array} { l l l l l l } & d f & \text { SS } & \text { MS } & F & \text { Signif F} \\ \text { Regression } & & 3605.7736 & 901.4434 & & 0.0001 \\ \text { Residual } & & 1214.2264 & 26.9828 & & \\ \text { Total } & 49 & 4820.0000 & & & \\ & & & & & \\ & \text { Coeff } & \text { StdError } & t \text { Stat } & p \text { value } & \\ \text { Intercept } & - 1.6335 & 5.8078 & - 0.281 & 0.7798 & \\ \text { Income } & 0.4485 & 0.1137 & 3.9545 & 0.0003 & \\ \text { Size } & 4.2615 & 0.8062 & 5.286 & 0.0001 & \\ \text { School } & - 0.6517 & 0.4319 & - 1.509 & 0.1383 & \end{array}$ Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error
-Referring to Instruction 13.4,what minimum annual income would an individual with a family size of 4 and 16 years of education need to attain a predicted 10,000 square metre home (House = 100) ?

• A) $178.33 thousand.
• B) $211.85 thousand.
• C) $44.14 thousand.
• D) $56.75 thousand.

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Definitions:

Basic Trust

A term introduced by Erik Erikson referring to the first stage of psychological development where an infant develops a sense of trust or mistrust largely depending on the quality of caregiving.

Autonomy

The capacity to make an informed, uncoerced decision; often related to the ability of individuals to govern themselves.

Competence

The quality or state of having sufficient knowledge, judgment, skill, or strength for a particular task.

Identity

The fact of being who or what a person or thing is; a distinct personality of an individual regarded as a persisting entity.