Refer to the accompanying table, which was obtained using data from homes sold.
ID: 3246186 • Letter: R
Question
Refer to the accompanying table, which was obtained using data from homes sold. The response (y) variable is selling price (in dollars). The predictor (x) variables are LP (list price in dollars), LA (living area of the home in square feet), and LOT (lot size in acres). If exactly two predictor (x) variables are to be used to predict the selling price, which two variables should be chosen? Why? Click the icon to view the various regression equations. Choose the correct answer below. A. The best two explanatory variables are LP and LOT because their associated regression equation has the lowest P-value of 0.000 and a good adjusted R^2 of 0.983. The best two explanatory variables are LA and LOT because their associated regression equation has the highest P-value of 0.000 and the lowest adjusted R^2 of 0.810. The best two explanatory variables are LP and LA because their associated regression equation has the lowest P-value of 0.000 and the highest adjusted R^2 of 0.984. D. None of the combinations of two predictor variables can be used to predict the selling price.Explanation / Answer
Option C, The best two explantory variables are LP and LA because their associated regression equation has the lowest p value of 0.000 and the highest adjusted R2 is 0.984
And also LA has larger single adjusted R2 than LOT i.e (0.601 > 0.233)