Exhibit 14-7

question 12

Multiple Choice

Exhibit 14-7.Assume you ran a multiple regression to gain a better understanding of the relationship between lumber sales,housing starts,and commercial construction.The regression uses lumber sales (in $100,000s) as the response variable with housing starts (in 1000s) and commercial construction (in 1000s) as the explanatory variables.The results of the regression are: Refer to Exhibit 14-7.If housing starts were 17,000 and commercial construction was 3,200,the best estimate of lumber sales would be:

• A)$16,920,000
• B)$16,925,370
• C)$22,014,000
• D)$22,290,000