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 meter square and income is measured in IDR millions. The builder randomly selected 50 families and ran the multiple regression. Partial Microsoft Excel output is provided below:
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Which of the independent variables in the model are significant at the 5% level?
Formulate the hypothesis and explain the answer.
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How far can you rely upon this model? Or, what is the percentage variation in House
explained by the model?
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What is the predicted house size (in hundreds of square feet) for an individual earning
an annual income of IDR 400 million and having a family size of 4?
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