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16) A national homebuilder builds single-family homes and condominium-style townhouses. The homebuilder collects data on the selling price, lot cost, type of home, and region

16)

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A national homebuilder builds single-family homes and condominium-style townhouses. The homebuilder collects data on the selling price, lot cost, type of home, and region of the country (M=Midwest, S=South) for closings during one month. Assume the following summary output is the result of the analysis of the homebuilder's data. SUMMARY OUTPUT Regression Statistics Multiple R 0.81 R Square 0.66 Adjusted R Square 0.65 Standard Error 27256.33 Observations 105 ANOVA of SS MS F Significance F Regression 1.45474E+11 72737033727 1.85002E-24 Residual 75776592133 742907766 Total 2.212518+11 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 124078.08 9051.36 13.71 7.09992E-25 106124.75 142031.40 Lot Cost .78 0.23 12.19 1.27124E-21 2.33 3.23 Townhouse -47418.98 5915.42 8.02 1.88449E-12 59152. 19 -35685.77 Which of the following statement is not correct about the model? O A. The coefficient of determination is equal to 0.66 O B. The overall model is significant at a = 0.01. O C. Selling price is the dependent variable. D. Some of the independent variables are not good predictors of the dependent variable at a = 0.01

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