SCENARIO 13-6
One of the Most Common Questions of Prospective

question 93

Multiple Choice

SCENARIO 13-6
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 2 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit ( X1 ) and the amount of insulation in inches ( X 2 ) .Given below is EXCEL output of the regression model. $$\begin{array}{l}\begin{array} { l r } \hline { \text { Regression Statistics } } \\\hline \text { Multiple R } & 0.5270 \\\text { R Square } & 0.2778 \\\text { Adjusted R Square } & 0.1928 \\\text { Standard Error } & 40.9107 \\\text { Observations } & 20 \\\hline\end{array}\\\end{array}$$
$\begin{array}{lrrrrr}\text { ANOVA }\\\hline&\text { df } & \text { SS } & \text { MS } & F & \text { Significance F }\\\hline\text { Regression } & 2 & 10943.0190 & 5471.5095 & 3.2691 & 0.0629 \\\text { Residual } & 17 & 28452.6027 & 1673.6825 & & \\\text { Total } & 19 & 39395.6218 & & &\end{array}$ 13-22 Multiple Regression $$\begin{array}{l}\begin{array} { l r r r r r r } \hline & \text { Coefficients } &{ \text { Standard Error } } & { \text { t Stat } } & \text { P-volue } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & 448.2925 & 90.7853 & 4.9379 & 0.0001 & 256.7522 & 639.8328 \\\text { Temperature } & - 2.7621 & 1.2371 & - 2.2327 & 0.0393 & - 5.3721 & - 0.1520 \\\text { Insulation } & - 15.9408 & 10.0638 & - 1.5840 & 0.1316 & - 37.1736 & 5.2919 \\\hline\end{array}\\\text { Also } \operatorname { SSR } \left( X _ { 1 } \mid X _ { 2 } \right) = 8343.3572 \text { and } \operatorname { SSR } \left( X _ { 2 } \mid X _ { 1 } \right) = 4199.2672\end{array}$$
-Referring to SCENARIO 13-6, what can we say about the regression model?

• A)The model explains 17.12% of the variability of heating costs; after correcting for the degrees of freedom, the model explains 27.78% of the sample variability of heating costs.
• B)The model explains 19.28% of the variability of heating costs; after correcting for the degrees of freedom, the model explains 27.78% of the sample variability of heating costs.
• C)The model explains 27.78% of the variability of heating costs; after correcting for the degrees of freedom, the model explains 19.28% of the sample variability of heating costs.
• D)The model explains 19.28% of the variability of heating costs; after correcting for the degrees of freedom, the model explains 17.12% of the sample variability of heating costs.

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Definitions:

Subclinical Narcissism

A form of narcissism that is less severe, characterized by traits of grandiosity, entitlement, or a need for admiration that does not fully meet the criteria for Narcissistic Personality Disorder.

Depressive Traits

Characteristics or features generally observed in individuals suffering from depression, such as persistent sadness, hopelessness, and a lack of energy.

Dependency Traits

Characteristics that denote an excessive reliance on others for emotional support, approval, or physical needs.

Borderline Personality

A disorder characterized by unstable moods, behavior, and relationships, often resulting in impulsive actions and problems with self-image.