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WILL DEFINITELY UPVOTE 23 A national homebuilder builds single-family homes and condominium-style townhouses. The homebuilder collects data on the selling price, lot cost, type of

WILL DEFINITELY UPVOTE

23

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

df

SS

MS

F

Significance F

Regression

1.45474E+11

72737033727

1.85002E-24

Residual

75776592133

742907766

Total

2.21251E+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

2.78

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

What should the lot cost be if the predicted value of a family house was $250,000?

  • A.

    28,238.47

  • B.

    62,352.84

  • C.

    62,352.84

  • D.

    45,295.65

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