SCENARIO 14-4
A real estate builder wishes to determine how house size (House) is influenced by family income (Income) and family size (Size). House size is measured in hundreds of square feet and income is measured in thousands of dollars. The builder randomly selected 50 families and ran the multiple regression. Partial Microsoft Excel output is provided below:

Also SSR (X 1 | X 2 ) = 36400.6326 and SSR (X 1 | X 2 ) = 3297.7917
-Referring to Scenario 14-4,which of the independent variables in the model are significant at the 5% level?
A)Income only
B)Size only
C)Income and Size
D)None

Question

SCENARIO 14-4
A real estate builder wishes to determine how house size (House) is influenced by family income (Income) and family size (Size). House size is measured in hundreds of square feet and income is measured in thousands of dollars. The builder randomly selected 50 families and ran the multiple regression. Partial Microsoft Excel output is provided below:

Also SSR (X 1 | X 2 ) = 36400.6326 and SSR (X 1 | X 2 ) = 3297.7917
-Referring to Scenario 14-4,which of the independent variables in the model are significant at the 5% level?
A)Income only 
B)Size only 
C)Income and Size 
D)None

Quizplus · Accepted Answer

The significant F-test and t-tests for Income and Size indicate that both independent variables are significant at the 5% level. Therefore, the best choice is C, which includes both Income and Size as significant independent variables in the model.

SCENARIO 14-4 A Real Estate Builder Wishes to Determine How House Size