TABLE 17-1
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 feet,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:
-Referring to Table 17-1,at the 0.01 level of significance,what conclusion should the builder draw regarding the inclusion of School in the regression model?
A)School is significant in explaining house size and should be included in the model because its p-value is less than 0.01.
B)School is significant in explaining house size and should be included in the model because its p-value is more than 0.01.
C)School 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)School is not significant in explaining house size and should not be included in the model because its p-value is more than 0.01.

Question

TABLE 17-1
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 feet,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: 
-Referring to Table 17-1,at the 0.01 level of significance,what conclusion should the builder draw regarding the inclusion of School in the regression model?
A)School is significant in explaining house size and should be included in the model because its p-value is less than 0.01. 
B)School is significant in explaining house size and should be included in the model because its p-value is more than 0.01. 
C)School 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)School is not significant in explaining house size and should not be included in the model because its p-value is more than 0.01.

Quizplus · Accepted Answer

The p-value for School (0.146) is greater than the significance level of 0.01, indicating that there is not enough evidence to conclude that it has a significant effect on house size. Therefore, School should not be included in the model.

TABLE 17-1 A Real Estate Builder Wishes to Determine How House Size