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 is the predicted house size (in hundreds of square feet)for an individual earning an annual income of $40,000,having a family size of 4,and going to school a total of 13 years?
A)11.43
B)15.15
C)24.88
D)53.87

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 is the predicted house size (in hundreds of square feet)for an individual earning an annual income of $40,000,having a family size of 4,and going to school a total of 13 years?
A)11.43 
B)15.15 
C)24.88 
D)53.87

Quizplus · Accepted Answer

From Table 17-1, the regression equation is: House = 4.85 + 0.348(Income) + 9.42(Size) + 3.76(School). Plugging in the values for income, size, and school, we get House = 4.85 + 0.348(40) + 9.42(4) + 3.76(13) = 24.88. Since house size is measured in hundreds of square feet, the predicted house size is 24.88 * 100 = 2488 square feet, or 248.8 hundreds square feet, which is closest to option C: 24.88.

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