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

question 39

Multiple Choice

Instruction 13.30
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 13.30,the observed value of the F statistic is missing from the printout.What are the degrees of freedom for this F statistic?

• A) 3 for the numerator, 46 for the denominator.
• B) 46 for the numerator, 3 for the denominator.
• C) 3 for the numerator, 49 for the denominator.
• D) 46 for the numerator, 49 for the denominator.

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Definitions:

Independent Buyers

Individuals or entities that purchase goods and services for their consumption or use, not influenced by the manufacturer's or seller's affiliations.

Price Matching

A policy where a retailer agrees to match a lower advertised price from a competitor on identical items.

Discount Pricing

A pricing strategy where products or services are offered to customers at lower than usual prices, often to stimulate demand or clear out inventory.

Price Fixing

An illegal agreement among competitors to set prices at a certain level, aimed at manipulating the market and stifling competition.