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

question 169

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,suppose the builder wants to test whether the coefficient on Income is significantly different from 0.What is the value of the relevant t-statistic?

• A)5.286
• B)5.195
• C)3.945
• D)- 1.509

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