TABLE 2 A real estate builder wishes to determine how house size (House) is infl
ID: 3376029 • 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)-3297.7917Explanation / Answer
From the summary table we can see that R^2 value for multiple regression model(house size as a dependent variable & family income and family size as a independent variables) is 71.89%.
As we have given that R^2 value for simple regression model(house size as a dependent variable & family size as a independent variables) is 0.39%.
Therefore additional percentage of total variation explained by including family income in the multiple regression model is =71.89%-0.39%=71.50%
Therefore answer is 3)71.50%
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