TABLE 14-4
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 14-4, 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 14-4
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 14-4, 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

The predicted house size (in hundreds of square feet) for an individual with Income = 40, Size = 4, and School = 13 is:
House = -15.17 + 1.27(40) + 12.50(4) + 15.06(13)
= 24.88
Therefore, the predicted house size is 24.88 * 100 = 2488 square feet, or 2488/100 = 24.88 hundreds of square feet.

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