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

question 154

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,what minimum annual income would an individual with a family size of 4 and 16 years of education need to attain a predicted 10,000 square foot home (House = 100) ?

• A)$44.14 thousand
• B)$56.75 thousand
• C)$178.33 thousand
• D)$211.85 thousand

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Definitions:

Paracelsus

A Swiss physician and alchemist of the late Renaissance period, known for founding the discipline of toxicology and promoting the use of chemicals in medicine.

Victorian Era

A period in British history during the reign of Queen Victoria from 1837 to 1901.

Freud

Sigmund Freud, an Austrian neurologist who founded the discipline of psychoanalysis, focusing on unconscious processes and childhood experiences.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse from one neuron (nerve cell) to another 'target' neuron, muscle cell, or gland cell.