A Real Estate Agent Developed a Model to Relate a House's

question 63

Multiple Choice

A real estate agent developed a model to relate a house's selling price (Y) to the area of floor space (X) and the area of floor space squared (X²) . The multiple regression equation for this model is: Y = 125 - 3X + X²
where: Y = selling price (times $1,000)
X = square feet of floor space (times 100)
What is the selling price of a house with 2,000 square feet? ______

• A) $305 000
• B) $125 000
• C) $300 000
• D) $465 000

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Definitions:

Stockholders

Individuals or entities that own shares of stock in a corporation, thereby owning a portion of the company.

Liabilities

Financial obligations or debts that a company owes, which it must pay back in the future.

Assets

Resources owned by a business or individual that have economic value.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company, categorized into operating, investing, and financing activities.