SCENARIO 14-4
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 regression. Partial Microsoft Excel output is provided below:

Also SSR (X 1 | X 2 ) = 36400.6326 and SSR (X 1 | X 2 ) = 3297.7917
-Referring to Scenario 14-3,what is the predicted consumption level for an economy with GDP equal to $4 billion and an aggregate price index of 150?
A)$1.39 billion
B)$2.89 billion
C)$4.75 billion
D)$9.45 billion

Question

SCENARIO 14-4
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 regression. Partial Microsoft Excel output is provided below:

Also SSR (X 1 | X 2 ) = 36400.6326 and SSR (X 1 | X 2 ) = 3297.7917
-Referring to Scenario 14-3,what is the predicted consumption level for an economy with GDP equal to $4 billion and an aggregate price index of 150?
A)$1.39 billion 
B)$2.89 billion 
C)$4.75 billion 
D)$9.45 billion

Quizplus · Accepted Answer

The predicted consumption level is calculated using the given GDP and aggregate price index. The correct choice is based on the model or formula provided in Scenario 14-3, which likely relates GDP and price index to consumption.

SCENARIO 14-4 A Real Estate Builder Wishes to Determine How House Size