SCENARIO 14-6
One of the Most Common Questions of Prospective $\beta$

question 211

Multiple Choice

SCENARIO 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 ( X ₂ ) . Given below is EXCEL output of the regression model.



Also SSR (X₁ | X₂) = 8343.3572 and SSR (X₂ | X₁) = 4199.2672
-Referring to Scenario 14-6,the estimated value of the regression parameter $\beta$ ₁ in means that

• A)holding the effect of the amount of insulation constant,an estimated expected $1 increase in heating costs is associated with a decrease in the daily minimum outside temperature by 2.76 degrees.
• B)holding the effect of the amount of insulation constant,a 1 degree increase in the daily minimum outside temperature results in a decrease in heating costs by $2.76.
• C)holding the effect of the amount of insulation constant,a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs by $2.76.
• D)holding the effect of the amount of insulation constant,a 1% increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs by 2.76%.

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Definitions:

Colonialism

The strategy or approach of gaining complete or partial political dominance over a different nation, settling it with colonizers, and utilizing it for economic gain.

European Empires

Refers to the dominions, colonies, and territories under the control of European countries that were established from the late 15th century onwards.

Common Assumptions

Widely held beliefs or ideas taken for granted without verification or evidence.

Native Cultures

The societal, religious, and cultural ways of life practiced by indigenous peoples around the world.