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

question 133

Short Answer

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 value of the partial F test statistic is _____ for
H₀ : Variable X₁ does not significantly improve the model after variable X₂ has been included
H₁ : Variable X₁ significantly improves the model after variable X₂ has been included

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