SCENARIO 14-6 One of the Most Common Questions of Prospective House Buyers

question 208

Multiple Choice

SCENARIO 14-6
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.



Also SSR (X₁ | X₂) = 8343.3572 and SSR (X₂ | X₁) = 4199.2672
-Referring to Scenario 14-5,what are the predicted sales (in millions of dollars) for a company spending $100 million on capital and $100 million on wages?

• A)15,800.00
• B)16,520.07
• C)17,277.49
• D)20,455.98

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