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

question 115

Multiple Choice

Instruction 13.27
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 13.27,one individual in the sample had an annual income of $10,000,a family size of 1 and an education of 8 years.This individual owned a home with an area of 1,000 square metre (House = 10.00) .What is the residual (in hundreds of square metre) for this data point?

• A) 8.10
• B) -8.10
• C) 5.40
• D) -5.40

Understand the implications of economizing behavior and marginal changes.

Recognize the value of information in making economic decisions.

Analyze the effects of policies and costs on economic decisions.

Understand the concept of marginal benefits and marginal costs in decision-making.

---

Definitions:

Wedding Ring

A ring symbolizing marriage, traditionally worn on the base of the left ring finger to signify marital commitment and love.

Cluttering Phrase

Unnecessary words or phrases that make sentences longer without adding significant meaning.

Skipped Meeting

An event or appointment that was missed or not attended as planned.

Arrange

To organize or put things in a particular order or configuration.