SCENARIO 18-1 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: SUMMARY OUTPUT
-Referring to Scenario 18-1, what fraction of the variability in house size is explained by income, size of family, and education?
A)27.0%
B)33.4%
C)74.8%
D)86.5%

Question

SCENARIO 18-1 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: SUMMARY OUTPUT 
-Referring to Scenario 18-1, what fraction of the variability in house size is explained by income, size of family, and education?
A)27.0% 
B)33.4% 
C)74.8% 
D)86.5%

Quizplus · Accepted Answer

The R-squared value in the Excel output is 0.748, indicating that 74.8% of the variability in house size is explained by income, size of family, and education. The R-squared value, which represents the fraction of the variability in the response variable that is explained by the predictor variables, is 0.748 or 74.8%. Therefore, choice C is the correct answer.

SCENARIO 18-1 a Real Estate Builder Wishes to Determine How