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

question 76

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
$\begin{array}{llllll} & d f & \text { SS } & \text { MS } & F & \text { Siguif } F \\\text { Regression } & & 3605.7736 & 901.4434 & & 0.0001 \\\text { Residual } & & 1214.2264 & 26.9828 & & \\\text { Total } & 49 & 4820.0000 & & &\end{array}$

$\begin{array}{lllll} & \text { Coeff } & \text { StdError } & \boldsymbol{t} \text { Stat } & \boldsymbol{P} \text {-value } \\\text { Intercept } & -1.6335 & 5.8078 & -0.281 & 0.7798 \\\text { Income } & 0.4485 & 0.1137 & 3.9545 & 0.0003 \\\text { Size } & 4.2615 & 0.8062 & 5.286 & 0.0001 \\\text { School } & -0.6517 & 0.4319 & -1.509 & 0.1383\end{array}$ Note: Adj.R Square = Adjusted R Square;Std.Error = Standard Error
-Referring to Instruction 13-4,at the 0.01 level of significance,what conclusion should the builder draw regarding the inclusion of Income in the regression model?

• A)Income is not significant in explaining house size and should not be included in the model because its p-value is more than 0.01.
• B)Income is significant in explaining house size and should be included in the model because its p-value is more than 0.01.
• C)Income is not significant in explaining house size and should not be included in the model because its p-value is less than 0.01.
• D)Income is significant in explaining house size and should be included in the model because its p-value is less than 0.01.

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Definitions:

Conditioned Stimulus

An initially neutral stimulus that, after being linked with an unconditioned stimulus, starts to produce a conditioned response.

Conditioned Response

A conditioned response is an automatic reaction established by learning to an initially neutral stimulus after being repeatedly paired with an unconditioned stimulus that triggers an automatic response.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior learning or conditioning.

Drug Tolerance

The reduced effectiveness of a drug as a result of the repeated use of the drug.