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TABLE 14-6 One of the Most Common Questions of Prospective House Buyers

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TABLE 14-6
One of the most common questions of prospective house buyers pertains to the cost of heating in dollars (Y).To provide its customers with information on that matter,a large real estate firm used the following 2 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit (X1)and the amount of insulation in inches (X2).Given below is EXCEL output of the regression model. TABLE 14-6 One of the most common questions of prospective house buyers pertains to the cost of heating in dollars (Y).To provide its customers with information on that matter,a large real estate firm used the following 2 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit (X<sub>1</sub>)and the amount of insulation in inches (X<sub>2</sub>).Given below is EXCEL output of the regression model.   Also SSR (X<sub>1</sub> ∣ X<sub>2</sub>)= 8343.3572 and SSR (X<sub>2</sub> ∣ X<sub>1</sub>)= 4199.2672 -Referring to Table 14-6,the partial F test for H<sub>0</sub> : Variable X<sub>1 </sub>does not significantly improve the model after variable X<sub>2 </sub>has been included H<sub>1 </sub>: Variable X<sub>1 </sub>significantly improves the model after variable X<sub>2</sub> has been included has ________ and ________ degrees of freedom. Also SSR (X1 ∣ X2)= 8343.3572 and SSR (X2 ∣ X1)= 4199.2672
-Referring to Table 14-6,the partial F test for
H0 : Variable X1 does not significantly improve the model after variable X2 has been included
H1 : Variable X1 significantly improves the model after variable X2 has been included
has ________ and ________ degrees of freedom.


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