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 14-4 and allowing for a 1% probability of committing a type I error,what is ^{the decision and conclusion for the test}H₀: $\beta$₁=$\beta$₂$\neq$ 0 vs.H₁: At least one $\beta$ _j$\neq$ 0,j = 1,2 ? A)Do not reject H₀ and conclude that the 2 independent variables taken as a group have significant linear effects on house size. B)Do not reject H₀ and conclude that the 2 independent variables taken as a group do not have significant linear effects on house size. C)Reject H₀ and conclude that the 2 independent variables taken as a group have significant linear effects on house size. D)Reject H₀ and conclude that the 2 independent variables taken as a group do not have significant linear effects on house size.

Question

Quizplus · Accepted Answer

Based on the given output, the F-statistic is 58.5735 with a corresponding p-value of 2.6345E-13. This means that we can reject the null hypothesis H₀ and conclude that the two independent variables (income and family size) taken as a group have significant linear effects on house size.

SCENARIO 14-4 a Real Estate Builder Wishes to Determine How β\betaβ

SCENARIO 14-4
a Real Estate Builder Wishes to Determine How $\beta$