A Realtor Is Trying to Predict the Selling Price of Houses

question 52

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 $6476 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:

Investment

An investment is an asset or item acquired with the goal of generating income or appreciation in value over time.

Fair Value Method

An accounting strategy that assesses and assigns a market-based valuation to assets and liabilities, reflecting their current exchange price.

Accounting

The organized method of documenting, examining, condensing, and presenting the economic activities of a company or person.

Investment

An asset or item acquired with the goal of generating income or appreciation in the future.