TABLE 14-4 A real estate builder wishes to determine how size influenced by fami
ID: 3236822 • Letter: T
Question
TABLE 14-4 A real estate builder wishes to determine how size influenced by family in (Income), family size (Size), and the head of household Seboo). 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: SUMMARY OUTPUT Regression Statistics Multiple R 0.865 R Square 0.748 Adjusted R Square 0.726 Standard Error 5.195 Observations ANOVA Signif F SS MS 3605.7736 901.4434 0.0001 Residual 12 14.2264 26.9828 Total 49 4820.0000 Std Error Stat P-value t Intercept 1.6335 5.8078 0.281 0.7798 Income 0.4485 0.1137 3.9545 0.0003 4.2615 0.8062 5.286 0.0001 School 0.6517 0.4319 1.509 0.1383 Referring to Table 14-4, what fraction of the variability in house size is explained by ir size of family, and education? a) 27.0% b) 33.4% c) 74.8% d) 86.5%Explanation / Answer
43) R2 = 74.8%
44) Income, size
45) house size = 0.4485*income + 4.2615*size - 0.6517*school - 1.6335
house size = 24.8804(hundreds of square feet.
Note: make sure to convert 40000 to 40(in thousands of dollars)
46) 100 = 0.4485*income + 4.2615*4 - 0.6517*16 - 1.6335, income = $211.85(thousands of dollars)
47) 50 = 0.4485*income + 4.2615*9 - 0.6517*10 - 1.6335, income = $44.14(thousands of dollars)
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