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 and allowing for a 1% probability of committing a type I error, what is the decision and conclusion for the test
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

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 and allowing for a 1% probability of committing a type I error, what is the decision and conclusion for the test 
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.

Quizplus · Accepted Answer

The p-value for the F-test is less than the significance level of 0.01, which means we reject the null hypothesis that the two independent variables (Income and Size) do not have a significant linear effect on House. Therefore, we can conclude that both Income and Size together have a significant linear effect on House size. The p-value for the F-test is less than 0.01, which means we reject the null hypothesis that the two independent variables do not have significant linear effects on house size. Instead, we can conclude that the two independent variables taken as a group have significant linear effects on house size.

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