SCENARIO 18-2 One of the Most Common Questions of Prospective House Buyers

question 18

Multiple Choice

SCENARIO 18-2
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 4 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit ( X₁ ) , the amount of insulation in inches ( X ₂ ) , the number of windows in the house ( X₃ ) , and the age of the furnace in years ( X ₄ ) . Given below are the EXCEL outputs of two regression models.


-Referring to Scenario 18-1,when the builder used a simple linear regression model with house size (House) as the dependent variable and education (School) as the independent variable,he obtained an r² value of 23.0%.What additional percentage of the total variation in house size has been explained by including family size and income in the multiple regression?

• A)2.8%
• B)51.8%
• C)72.6%
• D)74.8%

Comprehend the principles of practical versus perfection standards and their implications on cost variances.

Grasp the concept of labour efficiency variance and its relevance in manufacturing processes.

Learn the method of calculating direct labour and material costs in standard costing.

Understand the impact of actual cost variations from standard costs on cost accounting.

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Definitions:

Natural Selection

A mechanism of evolution where organisms better adapted to their environment tend to survive and produce more offspring.

Functionalism

A perspective in psychology that emphasizes the purposes of behavior and mental processes and how they adapt to the environment.

Consciousness Purpose

Refers to the theories or explanations regarding why consciousness exists and its role in human cognitive processes and behavior.

Mental Images

The representation of objects, actions, or ideas that are not physically present, existing in the mind.