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 estimated mean consumption level for an economy with GDP equal to $2 billion and an aggregate price index of 90?
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 estimated mean consumption level for an economy with GDP equal to $2 billion and an aggregate price index of 90?
A)$1.39 billion 
B)$2.89 billion 
C)$4.75 billion 
D)$9.45 billion

Quizplus · Accepted Answer

The estimated mean consumption level can be calculated using the given GDP and aggregate price index values. However, without the specific formula or additional context from Scenario 14-3, it's not possible to provide a detailed explanation. The correct answer, A) $1.39 billion, is chosen based on the assumption that it aligns with the information provided in Scenario 14-3, which is not visible in this query. Typically, such calculations involve adjusting GDP by the price index or applying a specific model's coefficients to these variables.

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