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:

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services.

Allocation Base

The criteria or standard used for distributing overhead costs to various cost objects, such as products, services, or departments.

Assembly Department

A specific section in a manufacturing facility where components are assembled into finished goods.

Machine Hours

A measure of the time machines are in operation, used to allocate machine-related expenses to production activities.