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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 -True or False: Consider a regression in which b<sub>2</sub> = -1.5 and the standard error of this coefficient equals 0.3.To determine whether X<sub>2</sub> is a significant explanatory variable,you would compute an observed t-value of -5.0. Also SSR (X1 ∣ X2)= 8343.3572 and SSR (X2 ∣ X1)= 4199.2672
-True or False: Consider a regression in which b2 = -1.5 and the standard error of this coefficient equals 0.3.To determine whether X2 is a significant explanatory variable,you would compute an observed t-value of -5.0.


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