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

question 54

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 are the regression degrees of freedom that are missing from the output?

• A) 50
• B) 3
• C) 49
• D) 46

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Definitions:

Gross Increases

Refers to the total increment in volume or quantity before any deductions like taxes or expenses are applied.

Business Activities

Various actions undertaken by a company as part of its operation, including investing, financing, and operating activities.

Revenues

The income received by a business from its normal business operations, often from the sale of goods or services.

Transposition

An error in which the order of the digits is changed, such as writing $542 as $452 or $524.