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:
-Referring to Scenario 14-4, when the builder used a simple linear regression model with house size (House)as the dependent variable and family size (Size)as the independent variable, he obtained an r2 value of 1.25%.What additional percentage of the total variation in house size has been explained by including income in the multiple regression?
A)15.00%
B)70.64%
C)71.50%
D)73.62%

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: 
-Referring to Scenario 14-4, when the builder used a simple linear regression model with house size (House)as the dependent variable and family size (Size)as the independent variable, he obtained an r2 value of 1.25%.What additional percentage of the total variation in house size has been explained by including income in the multiple regression?
A)15.00% 
B)70.64% 
C)71.50% 
D)73.62%

Quizplus · Accepted Answer

The additional percentage of total variation in house size explained by including income in the multiple regression is found by subtracting the initial r2 value (1.25%) from the new r2 value when income is included. If the new r2 value is significantly higher, the difference between the two percentages represents the additional explained variation. Given the choices, 70.64% suggests a significant increase in explained variation when income is included, indicating a substantial improvement in the model's explanatory power.

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