Instruction 13-4
a Real Estate Builder Wishes to Determine How

question 120

Multiple Choice

Instruction 13-4
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
$\begin{array}{ll}\text { Multiple R } & 0.865 \\ \text { R Square } & 0.748 \\ \text { Adj. R Square } & 0.726 \\ \text { Std. Error } & 5.195 \\ \text { Observations } & 50\end{array}$
ANOVA
$\begin{array}{llllll} & d f & \text { SS } & \text { MS } & \text { F } & \text { Siguif } \boldsymbol{F} \\\text { Regression } & & 3605.7736 & 901.4434 & & 0.0001 \\\text { Residual } & & 1214.2264 & 26.9828 & & \\\text { Total } & 49 & 4820.0000 & & &\end{array}$

$\begin{array}{lllll} & \text { Coeff } & \text { SttError } & \boldsymbol{t} \text { Stat } & \boldsymbol{P} \text {-value } \\\text { Intercept } & -1.6335 & 5.8078 & -0.281 & 0.7798 \\\text { Income } & 0.4485 & 0.1137 & 3.9545 & 0.0003 \\\text { Size } & 4.2615 & 0.8062 & 5.286 & 0.0001 \\\text { School } & -0.6517 & 0.4319 & -1.509 & 0.1383\end{array}$ Note: Adj.R Square = Adjusted R Square;Std.Error = Standard Error
-Referring to Instruction 13-4,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%

---

Definitions:

Regular Basis

A recurring or habitual schedule or frequency at which an action or event occurs.

Phased Retirement

Describes a work arrangement allowing employees to gradually reduce their working hours as they approach retirement, often to balance personal needs and organizational demands.

Old Age Security (OAS)

a government-sponsored pension plan designed to provide a monthly income to senior citizens, aiming to ensure they can maintain a basic standard of living in retirement.

Internet Usage

The activities and behaviors of individuals while online, encompassing various actions like browsing, shopping, communicating, and information gathering.