Examlex

Solved

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

question 2

Multiple Choice

TABLE 14-6
One of the most common questions of prospective house buyers pertains to the average cost of heating in dollars (Y) . To provide its customers with information on that matter, a large real estate firm used the following 4 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit (X1) , the amount of insulation in inches (X2) , the number of windows in the house (X3) , and the age of the furnace in years (X4) . Given below are the EXCEL outputs of two regression models.
Model 1
TABLE 14-6 One of the most common questions of prospective house buyers pertains to the average cost of heating in dollars (Y) . To provide its customers with information on that matter, a large real estate firm used the following 4 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit (X<sub>1</sub>) , the amount of insulation in inches (X<sub>2</sub>) , the number of windows in the house (X<sub>3</sub>) , and the age of the furnace in years (X<sub>4</sub>) . Given below are the EXCEL outputs of two regression models. Model 1 Note: 2.96869E-05 = 2.96869×10<sup>-5</sup> Model 2 Note: 2.9036E-06 = 2.9036×10<sup>-6</sup> -Referring to Table 14-6, the estimated value of the partial regression parameter β<sub>1</sub> in Model 1 means that A) all else equal, an estimated expected $1 increase in heating costs is associated with a decrease in the daily minimum outside temperature by 4.51 degrees. B) all else equal, a 1 degree increase in the daily minimum outside temperature results in a decrease in heating costs by $4.51. C) all else equal, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs by $4.51. D) all else equal, a 1% increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs by 4.51%. Note: 2.96869E-05 = 2.96869×10-5
Model 2
TABLE 14-6 One of the most common questions of prospective house buyers pertains to the average cost of heating in dollars (Y) . To provide its customers with information on that matter, a large real estate firm used the following 4 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit (X<sub>1</sub>) , the amount of insulation in inches (X<sub>2</sub>) , the number of windows in the house (X<sub>3</sub>) , and the age of the furnace in years (X<sub>4</sub>) . Given below are the EXCEL outputs of two regression models. Model 1 Note: 2.96869E-05 = 2.96869×10<sup>-5</sup> Model 2 Note: 2.9036E-06 = 2.9036×10<sup>-6</sup> -Referring to Table 14-6, the estimated value of the partial regression parameter β<sub>1</sub> in Model 1 means that A) all else equal, an estimated expected $1 increase in heating costs is associated with a decrease in the daily minimum outside temperature by 4.51 degrees. B) all else equal, a 1 degree increase in the daily minimum outside temperature results in a decrease in heating costs by $4.51. C) all else equal, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs by $4.51. D) all else equal, a 1% increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs by 4.51%. Note: 2.9036E-06 = 2.9036×10-6
-Referring to Table 14-6, the estimated value of the partial regression parameter β1 in Model 1 means that

Definitions:

Outward Shift

Refers to an expansion in an economy's production possibility frontier, indicating an increase in the ability to produce goods and services.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with a fixed amount of resources and technology in a given period.

7 Percent Unemployment

A situation where 7 out of every 100 labor force participants are without a job and actively seeking employment, indicating the level of joblessness in an economy.

U.s. Economy

The United States' economic structure is defined by a mixed-market system, incorporating both private sector businesses and government involvement.

Related Questions

Q24: Referring to Table 14-6, what are the

Q25: Which of the following is a powerful

Q55: Referring to Table 17-7, an <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4634/.jpg"

Q55: Referring to Table 15-4, there is reason

Q74: Referring to Table 17-8, an R chart

Q76: Referring to Table 13-4, the managers of

Q78: Referring to Table 13-10, the residual plot

Q143: In trying to construct a model to

Q151: Referring to Table 13-11, which of the

Q160: Referring to Table 12-10, the alternative hypothesis