SCENARIO 14-4
14-10 Introduction to Multiple Regression
-Referring to Scenario 14-4, at the 0.01 level of significance, what conclusion should the builder
Reach regarding the inclusion of Income in the regression model?
A) Income is significant in explaining house size and should be included in the model because its p-value is less than 0.01.
B) Income is significant in explaining house size and should be included in the model because its p-value is more than 0.01.
C) Income is not significant in explaining house size and should not be included in the model because its p-value is less than 0.01.
D) Income is not significant in explaining house size and should not be included in the model because its p-value is more than 0.01.

Question

SCENARIO 14-4  
14-10 Introduction to Multiple Regression
-Referring to Scenario 14-4, at the 0.01 level of significance, what conclusion should the builder
Reach regarding the inclusion of Income in the regression model?
A) Income is significant in explaining house size and should be included in the model because its p-value is less than 0.01. 
B) Income is significant in explaining house size and should be included in the model because its p-value is more than 0.01. 
C) Income is not significant in explaining house size and should not be included in the model because its p-value is less than 0.01. 
D) Income is not significant in explaining house size and should not be included in the model because its p-value is more than 0.01.

Quizplus · Accepted Answer

Income is significant in explaining house size and should be included in the model because its p-value is less than 0.01.