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TABLE 2 A real estate builder wishes to determine how house size (House) is infl

ID: 3376027 • Letter: T

Question

TABLE 2 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 regressio n. Partial Microsoft Excel output is provided below SUMMARY OUTPUT Re ion Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.8479 0.7189 0.7069 17.5771 50 ANOVA Significance 5S 37043.3236 14487.7627 51531.0863 MS 18521.6618 60.09 Regression Residual Total 0.0000 47 308.2503 49 Coefficients Standard Error Stat P-value Intercept Income Size 5.5146 0.4262 5.5437 7.2273 0.0392 1.6949 0.7630 10.8668 3.2708 0.4493 0.0000 0.0020 Also SSR (X11X2)-36400.6326 and SSR (X2lX1)-3297.7917

Explanation / Answer

Income and size have p value of 0.000 and 0.002 respectively. Hence both independent variables in the model are significant at 5% level

Answer is 2) Income and Size

(Decision Rule: If p value is less than significance level then that variable is significant for the model)