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

question 163

Multiple Choice

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. Also SSR (X₁ ∣ X₂) = 8343.3572 and SSR (X₂ ∣ X₁) = 4199.2672
-Referring to Table 14-6,what can we say about the regression model?

• A)The model explains 17.12% of the variability of heating costs; after correcting for the degrees of freedom,the model explains 27.78% of the sample variability of heating costs.
• B)The model explains 19.28% of the variability of heating costs; after correcting for the degrees of freedom,the model explains 27.78% of the sample variability of heating costs.
• C)The model explains 27.78% of the variability of heating costs; after correcting for the degrees of freedom,the model explains 19.28% of the sample variability of heating costs.
• D)The model explains 19.28% of the variability of heating costs; after correcting for the degrees of freedom,the model explains 17.12% of the sample variability of heating costs.

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Definitions:

Fundraising

The process of gathering voluntary financial contributions from individuals, businesses, or governmental agencies.

Tickets

A slip or form that entitles the holder to enter a place, travel by public transport, or participate in an event.

Elimination

A method in mathematics used to remove variables from equations, often used in solving systems of equations.

Linear Equations

Equations of the first degree, meaning they involve only the first powers of variables, representing straight lines in two-dimensional space.