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%

---

Definitions:

Corporate Career Backgrounds

Histories or experiences of individuals in business environments, detailing progression, roles, and achievements within corporate structures.

Corporate Bureaucracies

Refers to complex organizational structures that involve many levels of management, rules, and regulations, often leading to inefficiency.

Minority-owned Businesses

Businesses that are at least 51% owned, operated, and controlled by individuals from minority groups.

Canadian Economy

The economic structure of Canada, characterized by its abundant natural resources, well-developed trade networks, and diversified industries.