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,what fraction of the variability in house size is explained by income,size of family,and education?
A)27.0%
B)33.4%
C)74.8%
D)86.5%

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,what fraction of the variability in house size is explained by income,size of family,and education?
A)27.0% 
B)33.4% 
C)74.8% 
D)86.5%

Quizplus · Accepted Answer

The R-squared value indicates the fraction of the variability in the dependent variable (in this case, house size) that is explained by the independent variables (income, family size, and education). In this case, the R-squared value is 0.748, which means that 74.8% of the variability in house size is explained by these three independent variables.

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