SCENARIO 18-2
One of the Most Common Questions of Prospective $\beta$

question 253

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 18-2,what is your decision and conclusion for the test H₀ : $\beta$ ₂ = 0 vs.H₁ : $\beta$ ₂ $\lt$ 0 at the $\alpha$ = 0.01 level of significance using Model 1 ?

• A)Do not reject H₀ and conclude that the amount of insulation has a linear effect on heating cots.
• B)Reject H₀ and conclude that the amount of insulation does not have a linear effect on heating costs.
• C)Reject H₀ and conclude that the amount of insulation has a negative linear effect on heating costs.
• D)Do not reject H₀ and conclude that the amount of insulation has a negative linear effect on heating costs.

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Definitions:

Multiple Births

Occurrences where more than one offspring is born from a single pregnancy, such as twins, triplets, or more.

Incidence

The occurrence, rate, or frequency of a disease, crime, or something else undesirable within a given population.

ART

Assisted Reproductive Technology; a range of medical procedures used to treat infertility that involve the manipulation of sperm and eggs or embryos outside the body.

Biological Child

A child resulting from the genetic contribution of its parents, as opposed to being adopted or fostered.