SCENARIO 14-4 A Real Estate Builder Wishes to Determine How House Size

Short Answer

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:


Also SSR (X₁ | X₂) = 36400.6326 and SSR (X₁ | X₂) = 3297.7917
-Referring to Scenario 14-4,one individual in the sample had an annual income of $100,000 and a family size of 10.This individual owned a home with an area of 7,000 square feet (House = 70.00).What is the residual (in hundreds of square feet)for this data point?