Question

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 Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.865 0.748 0.726 5.195 50 ANOVA df SS Signif F MS Regression Residual 3 3605.7736 1201.9245 1214.2264 4820.0000 45.5340 0.0000 46 49 26.3962 Total Coeff -1.6335 0.4485 4.2615 -0.6517 StdError 5.8078 P-value t Stat -0.281 3.9545 5.286 Intercept Income 0.7798 0.0003 0.0001 0.1383 0.1137 Size School 0.8062 0.4319 -1.509 Which of the independent variables in the model are significant at the 5% level? Income, Size OIncome, Size, School Size, School Income, School

Answer 1

P value for income and size < 0.05

Therefore,

Income and Size

level Which of the independent variables in the model are significant at the Income, Sice Income Sie School Size, School Income School 1