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

question 17

Multiple Choice

Instruction 13.16
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
$\begin{array} { l l l l l l } & d f & \text { SS } & \text { MS } & F & \text { Signiff } \\ \text { Regression } & & 3605.7736 & 901.4434 & & 0.0001 \\ \text { Residual } & & 1214.2264 & 26.9828 & & \\ \text { Total } & 49 & 4820.0000 & & & \\ & & & & & \\ & \text { Coeff } & \text { StdError } & t \text { Stat } & p \text { value } & \\ \text { Intercept } & - 1.6335 & 5.8078 & - 0.281 & 0.7798 & \\ \text { Income } & 0.4485 & 0.1137 & 3.9545 & 0.0003 & \\ \text { Size } & 4.2615 & 0.8062 & 5.286 & 0.0001 & \\ \text { School } & - 0.6517 & 0.4319 & - 1.509 & 0.1383 & \end{array}$ Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error
-Referring to Instruction 13.16,what fraction of the variability in house size is explained by income,size of family and education?

• A) 74.8%
• B) 33.4%
• C) 27.0%
• D) 86.5%

Understand the strong and weak axioms of revealed preference and their application to consumer choice.

Comprehend how changes in prices and income affect consumption choices under different circumstances.

Analyze the impact of exchange rate fluctuations and futures contracts on individual financial welfare.

Understand the calculation and interpretation of Laspeyres and Paasche price indices.

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Definitions:

Viability

The ability of an entity or project to sustain itself or succeed over a long period.

Task Performance

The execution and accomplishment of specific work-related activities or objectives.

Member Satisfaction

the degree to which members of an organization, community, or service feel their needs and expectations are being met.

Team Diversity

The inclusion of a range of different individuals in a team, encompassing varied demographics, skills, experiences, and perspectives, enhancing creativity and decision-making.