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

question 12

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,what can we say about the regression model?

• A)The model explains 17.12% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 27.78% of the sample variability of heating costs.
• B)The model explains 19.28% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 27.78% of the sample variability of heating costs.
• C)The model explains 27.78% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 19.28% of the sample variability of heating costs.
• D)The model explains 19.28% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 17.12% of the sample variability of heating costs.

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Definitions:

Hazardous Wastes

Waste materials that are dangerous or potentially harmful to human health or the environment.

Stress Response

The body's reaction to any change that requires an adjustment or response, which can be physical, mental, or emotional.

Expression

The process of making known one's thoughts or feelings, or the manifestation of a characteristic through genes.

Embarrassment

A complex emotional state that arises from a perceived personal failure or awkwardness, often leading to feelings of vulnerability and self-consciousness.