A Realtor Is Trying to Predict the Selling Price of Houses

question 26

Multiple Choice

A realtor is trying to predict the selling price of houses in Greenville (in thousands of dollars) as a function of Size (measured in thousands of square feet) and whether or not there is a fireplace (FP is 0 if there is no fireplace,1 if there is a fireplace) .Part of the regression output is provided below,based on a sample of 20 homes.Some of the information has been omitted. Which statement is supported by the regression output?

• A)At α = .05,FP is not a significant predictor in a two-tailed test.
• B)A fireplace adds around $6,476 to the selling price of the average house.
• C)A large house with no fireplace will sell for more than a small house with a fireplace.
• D)FP is a more significant predictor than Size.

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Definitions:

Open Market Purchases

The buying of government securities by a central bank to inject money into the economy.

Fed's Control

The range of monetary policy tools and measures the Federal Reserve (the central bank of the United States) uses to control the supply of money, aiming to influence economic conditions, particularly inflation and unemployment rates.

Money Supply

Pertains to the aggregate sum of funds—including cash, coins, and bank account balances—present within an economy at a given moment.

Store Of Value

An asset that can be saved, retrieved, and exchanged at a later time, ideally retaining its value over time.