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

question 181

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.
$\begin{array}{ll}\text { Model } 1 \\\text { Regression Statistics } \\\hline \text { R Square }& 0.8080 \\\text { AdjustedR S quare }& 0.7568 \\\text { Observations } &20 \end{array}$

ANOVA
$\begin{array}{lrrccc} & \text { df } &{S S} & M S & F & \text { Signuficance F } \\\hline \text { Regression } & 4 & 169503.4241 & 42375.86 & 15.7874 & 2.96869 E-05 \\\text { Residual } & 15 & 40262.3259 & 2684.155 & & \\\text { Total } & 19 & 209765.75 & & & \\\hline\end{array}$

$\begin{array}{lrrrrrrr} && \text { Standard } & & \text {Lower} & \text {Upper }\\& \text {Coefficients} & \text {Error} & \text { t Stat } & \text {p -value} & 90.0 \% & 90.0 \% \\ \hline \text { Intercept }& 421.4277 & 77.8614 & 5.4125 & 7.2 \mathrm{E}-05& 284.9327 & 557.9227 \\ \text { X{1} (Temperature) } & -4.5098 & 0.8129 & -5.5476 &5.58 \mathrm{E}-05 & -5.9349 & -3.0847 \\ \text {X{2} (Insulation) }& -14.9029 & 5.0508 & -2.9505 & 0.0099 & -23.7573 & -6.0485 \\ \text { X{3} (Windows) }& 0.2151 & 4.8675 & 0.0442 & 0.9653 & -8.3181 & 8.7484 \\ \text { X{4} (Furnace Age) } & 6.3780 & 4.1026 & 1.5546 & 0.1408 & -0.8140 & 13.5702 \\\hline\end{array}$

$\begin{array}{ll} \text { Model 2} \\\hline \text {Regression Statistics} \\\hline \text {R Square }& 0.7768\\ \text {Adjusted R Square }&0.7506 \\ \text {Observations }& 20 \\\hline\end{array}$
ANOVA
$\begin{array}{lrrrcc}\hline & \text { d f} & \text { SS } & \text { MS } & \text {SS } & \text {Significance F } \\\hline \text {Regression} & 2 & 162958.2277 & 81479.11 & 29.5923 & 2.9036 \mathrm{E}-06 \\ \text {Residual }& 17 & 46807.5222 & 2753.384 & & \\ \text {Total }& 19 & 209765.75 & & & \\\hline\end{array}$

$\begin{array}{lcccccc} && \text { Standard } & &\text { Lower} &\text { Upper} \\& \text {Coefficients }&\text { Error }&\text { t Stat }& \text { p -value} &95 \%& 95 \% \\\hline \text {Intercept }& 489.3227 & 43.982611 .1253 &3.17 \mathrm{E}-09& 396.5273 & 582.1180 \\\text { X{1} (Temperature) }& -5.1103 & 0.6951-7.3515 & 1.13 \mathrm{E}-06 & -6.5769 & -3.6437 \\\text { X{2} (Insulation) }& -14.7195 & 4.8864-3.0123 & 0.0078 & -25.0290 & -4.4099 \\\hline\end{array}$
-Referring to Table 14-6, what are the degrees of freedom of the partial F test for H0 : þ3 = þ4 = 0 versus H1: At least one þj × 0, j = 3,4?

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Definitions:

Work Schedules

The planned hours that employees are expected to work, which can vary in terms of shift length, timing, and patterns, depending on the organization's operational needs.

Supervision

The act of overseeing and guiding employees or tasks to ensure that activities are carried out effectively and standards are met.

Workplace Stressor

Any aspect of the work environment or job responsibilities that contributes to stress among employees.

Inadequate Authority

A scenario where a person does not have the sufficient power or decision-making ability required to effectively perform their job or lead others.