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

question 24

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
Note: 2.96869E-05 = 2.96869×10^-5
Model 2
Note: 2.9036E-06 = 2.9036×10^-6
-Referring to Table 14-6, what are the degrees of freedom of the partial F test for H₀ : β₃ = β₄ = 0 vs. H₁ : At least one β_j ≠ 0, j = 3, 4?

• A) 2 numerator degrees of freedom and 15 denominator degrees of freedom
• B) 15 numerator degrees of freedom and 2 denominator degrees of freedom
• C) 2 numerator degrees of freedom and 17 denominator degrees of freedom
• D) 17 numerator degrees of freedom and 2 denominator degrees of freedom

---

Definitions:

Securities Regulations

Laws and rules governing the issuance, trading, and sale of securities, aimed at protecting investors and ensuring fair and efficient markets.

Required Meetings

Mandatory gatherings designated for discussing agendas, resolving issues, or disseminating information among team members or departments.

Managerial Position

A role or job that involves overseeing and directing the operations and activities within an organization.

Demands

The requirements or needs that must be met by individuals or systems, often within a specific time frame or under certain conditions.