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
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 years. The builder randomly selected 50 families and constructed the multiple regression model. The business literature involving human capital shows that education influences an individuals annual income. Combined, these may influence family size. With this in mind, what should the real estate builder be particularly concerned with when analyzing the multiple regression model?
Group of answer choices:
Missing observations
Normality of residuals
Randomness of error terms
Collinearity
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