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

question 20

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.
Regression Statistics Multiple R 0.7930R Square0.6288Adjusted R Square0.6029Standard Error 10.4570Observations 47\begin{array}{lr}\hline\text {Regression Statistics } \\\hline \text {Multiple R }& 0.7930 \\\text {R Square} & 0.6288 \\\text {Adjusted R Square} & 0.6029 \\\text {Standard Error }& 10.4570 \\\text {Observations }& 47 \\\hline\end{array}


ANOVA
 d f  SS  MS  F  Significance F Regression 37965.082655.0324.28022.3853E09 Residual434702.02109.35 Total 4612667.11\begin{array}{lccccc}\hline &\text { d f } &\text { SS }& \text { MS }& \text { F } & \text { Significance F} \\\hline \text { Regression }& 3 & 7965.08 & 2655.03 & 24.2802 & 2.3853 \mathrm{E}-09 \\\text { Residual} & 43 & 4702.02 & 109.35 & & \\\text { Total }& 46 & 12667.11 & & & \\\hline\end{array}

 Coeffs Stnd Err t Stat p -value  Lower 95% Upper 95% Intercept 753.4225101.11497.45112.88E09957.3401549.5050% Attend 8.50141.07717.89296.73E106.329210.6735 Salary6.85E070.00060.00110.99910.00130.0013 Spending 0.00600.00461.28790.20470.00340.0153\begin{array}{lrrrrrr}\hline &\text { Coeffs} & \text { Stnd Err} &\text { t Stat} &\text { p -value }&\text { Lower 95\%} \text { Upper 95\%} \\\hline\text { Intercept }& -753.4225 & 101.1149 & -7.4511 & 2.88 \mathrm{E}-09 & -957.3401 & -549.5050 \\\%\text { Attend }& 8.5014 & 1.0771 & 7.8929 & 6.73 \mathrm{E}-10 & 6.3292 & 10.6735 \\\text { Salary} & 6.85 \mathrm{E}-07 & 0.0006 & 0.0011 & 0.9991 & -0.0013 & 0.0013 \\\text { Spending }& 0.0060 & 0.0046 & 1.2879 & 0.2047 & -0.0034 & 0.0153 \\\hline\end{array}

-Referring to Table 14-6, what is the 90% confidence interval for the expected change in average heating costs as a result of a 1 degree Fahrenheit change in the daily minimum outside temperature using Model 1?

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Definitions:

Researcher

An individual who conducts detailed and systematic investigation into a subject area with the purpose of discovering or establishing new knowledge.

Survey

A method of gathering information from individuals, typically by asking questions to a representative sample of people to draw conclusions about the whole population.

Data Collection

The process of gathering and measuring information on targeted variables to answer relevant questions and evaluate outcomes.

Quick

Characterized by rapidity or speed in movement, action, or thought.

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