TABLE 13-4
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 13-4, which of the independent variables in the model are significant at the 5% level?
A) Income, Size, School
B) Income, Size
C) Size, School
D) Income, School

Question

TABLE 13-4
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 13-4, which of the independent variables in the model are significant at the 5% level?
A) Income, Size, School 
B) Income, Size 
C) Size, School 
D) Income, School

Quizplus · Accepted Answer

Based on the p-values provided, only Income and Size are significant at the 5% level, as their p-values are below 0.05. The p-value for School is 0.107, which is greater than the 5% level of significance, indicating that it is not a significant predictor in this model. Therefore, the best choice is B, which includes only Income and Size as significant predictors of house size.

TABLE 13-4 A Real Estate Builder Wishes to Determine How House Size